On November 1, 2015, the Morrison Company purchased a two-year umbrella insurance policy for $3,600 and recorded the transaction by debiting Prepaid Insurance and crediting Cash. Which of the following adjusting entries would be used by Morrison to properly account for prepaid insurance on December 31, 2015?
A) ?Insurance Expense 300Prepaid Insurance 300?
B) ?Prepaid Insurance 3,600Insurance Expense 3,600?
C) ?Insurance Expense 300Accumulated Amortization-Insurance 300?
D) ?Prepaid Insurance 1,800Cash 1,800
A
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