The balance in the prepaid insurance account before adjustment at the end of the year is $12,000. If the additional data for the adjusting entry is (1 ) "the amount of insurance expired during the year is $9,500," as compared to additional data stating (2 ) "the amount of unexpired insurance applicable to a future period is $2,500," for the adjusting entry:
A) the debit and credit amount for (1 ) would be the same as (2 ) but the accounts would be different
B) the accounts for (1 ) would be the same as the accounts for (2 ) but the amounts would be different
C) the accounts and amounts would be the same for both (1 ) and (2 )
D) there is not enough information given to determine the correct accounts and amounts
C
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Sherri told Liz that her firm will compete on setting prices because that's good business. Which statement best explains her position?
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