Question 3.6: Adjustment for Prepaid Expense The prepaid insurance account...

Financial Accounting

Adjustment for Prepaid Expense

The prepaid insurance account had a beginning balance of $2,400 and was debited for $3,600 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $3,250.

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