A store purchased a one-year insurance policy for $1,800 on September 1. Its fiscal period ended December
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A store purchased a one-year insurance policy for $1,800 on September 1. Its fiscal period ended December 31. What is the amount of the adjustment and what accounts are debited and credited on December 31?
a. $1,800; insurance expense and prepaid insurance
b. $600; insurance expense and prepaid insurance
c. $1,200; insurance expense and prepaid insurance
d. $600; prepaid insurance and insurance expense
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