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Lakeland Motor Homes is owned by Joey and Janice Ramone. At the beginning of the year Lakeland purchased a one year insurance policy for $2,400
Lakeland Motor Homes is owned by Joey and Janice Ramone. At the beginning of the year Lakeland purchased a one year insurance policy for $2,400 covering their showroom and surrounding facilities. Lakeland adjusts the insurance each month for the amount of the policy that's expired each month. Which of the following items would be a part of the adjusting entry at the end of every month?
| A. | $2,400 credit to Expired Insurance | |
| B. | $2,400 debit to Prepaid Insurance | |
| C. | $200 debit to Insurance Expense | |
| D. | $200 credit to Cash |
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