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The Insurance Policy Covers Four Years and Was Purchased by Sneetch

Question 58

Multiple Choice

The insurance policy covers four years and was purchased by Sneetch on 1/1/13.The adjusting entry on December 31,2013 would include


A) a debit to prepaid insurance for $1,200.
B) a credit to prepaid insurance for $1,200.
C) a debit to insurance expense for $3,600.
D) a credit to prepaid insurance for $3,600.

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