Arid Company paid $1,704 on June 1 . 2013 . for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31 . 2013 . adjusting entry is

a. debit Prepaid Insurance and credit Insurance Expense, $497.
b. debit Insurance Expense and credit Prepaid Insurance, $497.
c. debit Insurance Expense and credit Prepaid Insurance, $1,207.
d. debit Prepaid Insurance and credit Insurance Expense, $1,207.


D

Business

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