Question: Note 9 provides information on Targets current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the

Note 9 provides information on Targets current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $16,233 million of selling, general, and administrative expenses reported in the income statement for the year ended February 1, 2020. How much cash did Target pay for insurance coverage during the year? Prepare the adjusting entry Target would make to record all insurance expenses for the year. What would be the effect on the income statement and balance sheet if Target didnt record an adjusting entry for prepaid expenses?

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