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ABC Company paid $6,000 cash for insurance in June that provides coverage for six months, from July through December. How much expense should be recognized
ABC Company paid $6,000 cash for insurance in June that provides coverage for six months, from July through December. How much expense should be recognized in June to be in accordance with generally accepted accounting principles?
A) $6,000
B) $1,000 ($6,000 1/6 for the month of June)
C) $3,000
D) No expense should be recognized in June.
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