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Your company obtains an annual insurance plan costing $10,000. The plan is paid over a period of 10-months consisting of a 25% down payment in

Your company obtains an annual insurance plan costing $10,000. The plan is paid over a period of 10-months consisting of a 25% down payment in month one and the remaining balance paid equally over the following 9 months. What are the journal entries that would be reflected each month to the income statement and balance sheet over the entire 12-month period?

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