At December 31, 2018, before any year-end adjustments, Murmur Company's Insurance Expense account had a balance of $2,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,800 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be

Question

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The expired portion of prepaid insurance ($2,800) should be added to the existing insurance expense ($2,450), resulting in an adjusted insurance expense of $5,250.

At December 31, 2018, Before Any Year-End Adjustments, Murmur Company's