Assume that $18,000 cash is paid for insurance to cover the next year.The appropriate debit and credit are:
A) Debit Insurance Expense $18,000,credit Prepaid Insurance $18,000.
B) Debit Prepaid Insurance $18,000,credit Insurance Expense $18,000.
C) Debit Prepaid Insurance $18,000,credit Cash $18,000.
D) Debit Cash $18,000,credit Prepaid Insurance $18,000.
Correct Answer:
Verified
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