The adjusting entry made to record prepaid insurance that has expired during the period would include a debit to:

Question

Quizplus · Accepted Answer

The adjusting entry to record the expiration of prepaid insurance would involve debiting Insurance Expense and crediting Prepaid Insurance. This is because the expense has been incurred during the current period and Prepaid Insurance is no longer an asset as it has been used up. Accrued Insurance and Unearned Insurance are not relevant accounts in this situation.

The Adjusting Entry Made to Record Prepaid Insurance That Has