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TB Problem Qu. 3-382 (Algo) Alternative Accounting for Prepayments - Expense This company's accounting policies require it to debit expense accounts when expenses are paid in advance, and to credit revenue accounts when customers pay for services in advance. Record entries for the company's following transactions. November 1 The company paid $12,600 cash for a 12 month insurance policy that took effect on that day. December 31 The company prepared any necessary year-end adjusting entrien. Journal entry worksheet The company prepared any necessary year-end adjusting entries. Note: Enter debits before credits