On December 31, 2016, Avery Corporation Paid $10,000 for Next

Multiple Choice

On December 31, 2016, Avery Corporation paid $10,000 for next year's insurance policy. This transaction should be recorded as follows by Avery:

A) Insurance expense 10,000
Insurance payable
10,000
B) Prepaid insurance expense 10,000
Insurance payable
10,000
C) Prepaid insurance expense 10,000
Cash
10,000
D) Insurance expense