`

After the year end, an auditor noticed that VHM Inc. accidentally recorded an insurance expenditure of $42,000 as an expense instead of properly recording it as a prepaid. The expenditure was made on the last day of the fiscal period, August 31, 2020. Write the journal entry that should be recorded to correct the prepaid insurance account. Assume the tax rate is 23%. Do not enter dollar signs or commas in the input boxes. Enter Debit accounts before Credit accounts. Enter the credit accounts in alphabetical order. Date Account Title and Explanation Debit Credit Aug 31 To correct prior period error