Bagwis Company has the following information: Prepaid insurance – January 1 1,600,000 Prepaid insurance – December 800,000 Insurance payable decrease by 1,200,000 Insurance payments 4,000,000   How much is the insurance expense under accrual basis? Group of answer choices 3,600,000 4,800,000 3,400,000 4,000,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bagwis Company has the following information:

Prepaid insurance – January 1

1,600,000

Prepaid insurance – December

800,000

Insurance payable decrease by

1,200,000

Insurance payments

4,000,000

 

How much is the insurance expense under accrual basis?

Group of answer choices
3,600,000
4,800,000
3,400,000
4,000,000
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