A company has the following three events in December:
December 1 - Pay last month's rent (November), $500.
December 15 - Pay rent for the current month (December), $500.
December 31 - Pay rent for the following year, $6,000.
How much would be recorded as Rent Expense for the month of December using accrual-basis accounting?
A) $6,500.
B) $7,000.
C) $1,000.
D) $500.
Answer: D
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