ABC Company had purchased a $7,500, 24-month insurance policy for a vehicle on November 1 with...

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ABC Company had purchased a $7,500, 24-month insurance policy for a vehicle on November 1 with the coverage effective date to be the same date as the purchase. Assuming only the only associated entry made was for the purchase, at year-end on December 31st, what amount would be the entry to record insurance expense? a. Debit Insurance Expense $625; Credit Prepaid Insurance $625 O b. Debit Prepaid Insurance $312.50; Credit Insurance Expense $312.50 O c. Debit Prepaid Insurance $625; Credit Insurance Expense $625 O d. Debit Insurance Expense $625; Credit Prepaid Insurance $625 Oe. Debit Insurance Expense $312.50; Credit Prepaid Insurance $312.50 ABC Company had purchased a $7,500, 24-month insurance policy for a vehicle on November 1 with the coverage effective date to be the same date as the purchase. Assuming only the only associated entry made was for the purchase, at year-end on December 31st, what amount would be the entry to record insurance expense? a. Debit Insurance Expense $625; Credit Prepaid Insurance $625 O b. Debit Prepaid Insurance $312.50; Credit Insurance Expense $312.50 O c. Debit Prepaid Insurance $625; Credit Insurance Expense $625 O d. Debit Insurance Expense $625; Credit Prepaid Insurance $625 Oe. Debit Insurance Expense $312.50; Credit Prepaid Insurance $312.50

Answer rating: 100% (QA)

Answer d Debit Insurance Expense 625 Credit Prepaid Insurance 625 ... View the full answer