Insurance is paid in December for January's premium. In December, the company makes an entry to debit prepaid expense and credit insurance expense. The insurance policy is canceled on December 31 and the January insurance premium is to be refunded in February. What should be the accounting entry in January? A debit to other receivables and a credit to ?
Insurance is paid in December for January's premium. In December, the company makes an entry to debit prepaid expense and credit insurance expense. The insurance policy is canceled on December 31 and the January insurance premium is to be refunded in February. What should be the accounting entry in January? A debit to other receivables and a credit to ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Insurance is paid in December for January's premium. In December, the company makes an entry to debit prepaid expense and credit insurance expense. The insurance policy is canceled on December 31 and the January insurance premium is to be refunded in February. What should be the accounting entry in January? A debit to other receivables and a credit to ?
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