Question
The journal entry to record expired prepaid factory insurance debits Blank______.
Multiple choice question.
Prepaid Insurance and credits Manufacturing Overhead
Work in Process and credits Prepaid Insurance
Prepaid Insurance and credits Cash
Manufacturing Overhead and credits Prepaid Insurance
Multiple choice question.
Prepaid Insurance and credits Manufacturing Overhead
Work in Process and credits Prepaid Insurance
Prepaid Insurance and credits Cash
Manufacturing Overhead and credits Prepaid Insurance
Answers
GPT-4o mini
The correct journal entry to record expired prepaid factory insurance is:
**Manufacturing Overhead and credits Prepaid Insurance.**
When the prepaid insurance expires, the company recognizes the expense, which is recorded as a debit to Manufacturing Overhead (an expense account) and a credit to Prepaid Insurance (an asset account).
**Manufacturing Overhead and credits Prepaid Insurance.**
When the prepaid insurance expires, the company recognizes the expense, which is recorded as a debit to Manufacturing Overhead (an expense account) and a credit to Prepaid Insurance (an asset account).