Question

the balance in the prepaid insurance account, before adjustment at the end of the year, is $11,500. journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment (a) the amount of insurance expired during the year is $8,750 (b) the amount of inexpired insurance applicable to future periods is $2,750
a. Dr Insurance expense 8750
Cr Prepaid insurance 8750

b. same as above

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