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An example of an adjusting entry for a prepaid item using the QBO journal is:
A) Debit Credit Insurance Expense $1,000 Prepaid Insurance $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Expense } &\$ 1,000\\\text { Prepaid Insurance } & &\$ 1,000 & \\\end{array} Insurance Expense Prepaid Insurance Debit $1,000 Credit $1,000
B) Debit Credit Prepaid Insurance$1,000 Insurance Expense $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Prepaid Insurance} &\$ 1,000\\\text { Insurance Expense } & &\$ 1,000 & \\\end{array} Prepaid Insurance Insurance Expense Debit $1,000 Credit $1,000
C) Debit Credit Insurance Expense$1,000 Insurance Payable$1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Expense} &\$ 1,000\\\text { Insurance Payable} & &\$ 1,000 & \\\end{array} Insurance Expense Insurance Payable Debit $1,000 Credit $1,000
D) Debit Credit Insurance Payable$1,000 Insurance Expense $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Payable} &\$ 1,000\\\text { Insurance Expense } & &\$ 1,000 & \\\end{array} Insurance Payable Insurance Expense Debit $1,000 Credit $1,000
On May 30, 2024