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Everest Corp. bought a one-year insurance on August 1, 2023 which took effect on the same day. The total cost of the insurance was $7,200

Everest Corp. bought a one-year insurance on August 1, 2023 which took effect on the same day. The total cost of the insurance was $7,200 and was paid with cash in full. The total cost was debited to Prepaid Insurance. Assuming the company records adjusting journal entries annually, what adjustment is needed at the fiscal year end, December 31, 2023?

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