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If 1,800 Was Paid for a One-year Insurance Policy, the Adjustment to Insurance Expense at :the End of the First Month Would Be a Credit

Question

If 1,800 was paid for a one-year insurance policy, the adjustment to insurance expense at :the end of the first month would be a credit for 100 debit for 150 debit for 100 credit for 150

Solution

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Nicole Veteran ยท Tutor for 11 years

Answer

To determine the adjustment to insurance expense at the end of the first month, we need to calculate the monthly insurance expense.The total cost of the one-year insurance policy is \ 150- Credit Prepaid Insurance (or Cash): \ 150**.