Three months of insurance were purchased on October 1st for $1,500 recorded in a Prepaid...
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Accounting
Three months of insurance were purchased on October 1st for $1,500 recorded in a Prepaid insurance account. What is the adjusting entry on December 31st to recognize that the three months of insurance has expired?
a. Debit Prepaid Insurance $1,500 and credit Cash $1,500
b. Debit Cash $1,500 and credit Prepaid Insurance $1,500
c. Debit Insurance Expense $1,500 and credit Cash $1,500
d. Debit Insurance Expense $1,500 and credit Prepaid Insurance $1,500
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