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On October 1, McReady Company paid six months' insurance in advance totaling $7800. The policy begins on October 1. An adjusted trial balance prepared on

On October 1, McReady Company paid six months' insurance in advance totaling $7800. The policy begins on October 1. An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of:

A.

$2600.

B.

$0.

C.

$3900.

D.

$7800.

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