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GRC paid $12,000 for a three-year insurance policy. The entire amount was debited to Insurance Expense on January 1, 2020. Question 24 options: Debit: Prepaid
GRC paid $12,000 for a three-year insurance policy. The entire amount was debited to Insurance Expense" on January 1, 2020.
Question 24 options:
| Debit: Prepaid Insurance- -$8,000; Insurance Expense- -$8,000. |
| Debit: Insurance Expense- -$8,000; Credit: Prepaid Insurance- -$8,000. |
| Debit: Prepaid Insurance- -$4,000; Retained Earnings- -$4,000. |
| No journal entry is needed. |
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