Lynnwood Services prepaid six months of insurance in advance on July 1, 2019. Lynnwood Services debited insurance expense for the entire amount of $12,000. The adjusting entry on December 31, 2019, would include:
A) a debit to prepaid insurance for $6,000.
B) a debit to prepaid insurance for $12,000.
C) a credit to insurance expense for $12,000.
D) No adjustment is necessary on December 31, 2019
Correct Answer:
Verified
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