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On March 1,Hoffman Paid in Advance for Four Months' Insurance

Question 61

Multiple Choice

On March 1,Hoffman paid in advance for four months' insurance.The necessary adjusting entry at March 31 includes which of the following?


A) A credit to Prepaid Insurance for $2,340.
B) A credit to Prepaid Insurance for $780.
C) A debit to Prepaid Insurance for $2,340.
D) A debit to Prepaid Insurance for $780.

Correct Answer:

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