1. On May 1, 20 a firm purchased a 1-year insurance policy for $1800 and paid the full premium in advance. The insurance expense associated with this policy a. 600 b. 1200 c. 1800. D. 1050 2. To arrive at an accurate balance on a bank reconciliation statement, outstanding checks should be 3. A firm appropriately wrote a check for $78 but entered the amount as payment on $87. On a bank reconciliation statement this error would be shown as 4. The entry to record a purchase of merchandise on credit uses a perpetual inventory system includes