Question

Assume that $17,800 cash is paid for insurance to cover the next year. The appropriate debit and credit would be: Multiple Choice Debit Prepaid Insurance $17,800, credit Cash $17,800. Debit Cash $17,800, credit Prepaid Insurance $17,800. Debit Insurance Expense $17,800, credit Prepaid Insurance $17,800. Debit Prepaid Insurance $17,800, credit Insurance Expense $17,800.

Answer 1

debit prepaid insurance $17,800, credit cash $17,800.

Step-by-step explanation:

Based on the information given Assume that the amount of $17,800 cash is paid for insurance to cover the next year, The appropriate debit and credit would be:

Debit prepaid insurance $17,800

Credit cash $17,800