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The prepaid insurance account for Darlinghurst Ltd had an opening balance of $4000 and a closing balance of $15 000. The following expenses and loss
The prepaid insurance account for Darlinghurst Ltd had an opening balance of $4000 and a closing balance of $15 000. The following expenses and loss were extracted from the statement of profit or loss:
$Bad debt expense15 000Insurance expense9 000Other expenses198 000Interest expense25 000Loss on disposal of land18 000
Which of the following amounts would appear as a debit in the prepaid insurance account?
Cash paid for insurance $9000Closing balance $15 000Insurance expense $9000Cash paid for insurance $20 000
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