Question 14 of 25
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What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before
adjustment, $18470, and unexpired amounts per analysis of policies of $6110?
Debit Insurance Expense, $12360; Credit Prepaid Insurance, $12360.
Debit Insurance Expense, $6110; Credit Prepaid Insurance, $6110.
Debit Insurance Expense, $18470; Credit Prepaid Insurance, $18470.
Debit Prepaid Insurance, $12360; Credit Insurance Expense, $12360.