Multiple Choice
The $4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month liability insurance policy. Assuming that 2 months of premium has now expired, the adjustment would be recorded in the work sheet as a:
A) debit to Prepaid Insurance, $4,500
B) credit to Prepaid Insurance, $1,500
C) debit to Insurance Expense, $4,500
D) debit to Insurance Expense, $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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