Final answer:
When the actual Rent Value (RV) is less than the probable expected RV, the lessee must make an additional Journal Entry (JE) called 'Rent Expense'. This JE decreases the lessee's net income.
Step-by-step explanation:
When the actual Rent Value (RV) is less than the probable expected RV, the lessee must make an additional Journal Entry (JE) to account for the difference. This JE is called 'Rent Expense' and it decreases the lessee's net income. The JE is recorded by debiting the Rent Expense account and crediting the Cash or Accounts Payable account, depending on the method of payment.