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Adjusting entries

1. What accounts does a company debit and credit in a prepaid expense adjusting entry?
2. What accounts are debited and credited in an unearned revenue adjusting entry.

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1. What accounts does a company debit and credit in a prepaid expense adjusting entry?

Debit is insurance expense and Credit is prepaid insurance.
In a prepaid adjusting entry we are adjusting for the expired insurance. We had taken out the insurance policy for a specific time and some time has elapsed now and so a part of the insurance has ...

Solution Summary

The solution explains the accounts to be debited and credited for prepaid expense and unearned revenue adjusting entries.

$2.19