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A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. 14- Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below Click the answer you think is right.
a. Prepaid insurance would be credited for $3,600.
b. Cash would be credited for $3,600.
c. Insurance expense would be debited for $300.
d. Insurance expense would be debited for $3,600.
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A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was...
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