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A company paid in advance $9,600 for two years of prepaid insurance, which started on May 1. The adjusting entry on the fiscal year ending
A company paid in advance $9,600 for two years of prepaid insurance, which started on May 1. The adjusting entry on the fiscal year ending December 31 of that year is: a. Debit: Insurance Expense; Credit: Prepaid Insurance, $3,200 b. Debit: Prepaid Insurance; Credit: Insurance Expense, $3,200 c. None of them d. Debit: Insurance Expense; Credit: Prepaid Insurance, $1,600 e. Debit: Insurance Expense; Credit: Prepaid Insurance, $2,400
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