At december 31, 2018, before any year-end adjustments, bramble company's insurance expense account had a balance of $2620 and its prepaid insurance account had a balance of $3750. it was determined that $2800 of the prepaid insurance had expired. the adjusted balance for insurance expense for the year would be

Adjusted balance of Insurance Expense A/c = $2,800

Explanation:

There is some insurance expense already charged amounting $2,620

Further out of prepaid insurance the expense for the period = $2,800

This shall also be charged to expense as relates to current period.

Therefore, total expense for the period shall be $2,620 + $2,800

For this, entry will be:

Insurance expense A/c Dr.       $2,800

       To Prepaid Insurance A/c                        $2,800

Therefore, net adjusted balance of insurance expense = $2,620 + $2,800 = $5,420

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