Adjustment for prepaid expense

The prepaid insurance account had a beginning balance of $$8,570$ and was debited for $$4,370$ of premiums paid during the year.

Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $$3,240.$ If an amount box does not require an entry, leave it blank.

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Insurance Expense

Prepaid Insurance