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On October 1, Carson Company paid $2,500 cash in advance for 6 months of insurance, with the insurance period beginning October 1. This $2,500 was
On October 1, Carson Company paid $2,500 cash in advance for 6 months of insurance, with the insurance period beginning October 1. This $2,500 was recorded as a debit to Prepaid Insurance Expense with a credit to Cash. As of the end of the year, no entry has yet been made to adjust the amount initially recorded. Which of the following would be included in the journal entry on DECEMBER 31?
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