Determining the amount of the adjustment


The balance in the prepaid insurance account, before adjustment at the end of the year, is $11,500. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $8,750; (b) the amount of unexpired insurance applicable to future periods is $2,750.

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Accounting Basics: Determining the amount of the adjustment
Reference No:- TGS080335

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