An adjusting entry at the end of the accounting period results in a(n) decrease in the asset account and a(n) increase in the expense account.
Explanation:
The account holds the payment details in the selling process. It represents the relationship between the buyer and seller.
Prepayment is a term used in accounts department. It is a payment mode that is settled before the official due date. Prepayment means paying the bill and expenses and settling the account before the due date.
Adjusting the entry at the end of the accounting period will result in decrease in the asset account and increase in the expense account.
