Which of the following entries records the payment of insurance
for the current month?
Cash, debit; Insurance Expense, credit
Prepaid Insurance, debit; Cash, credit
Insurance Expense, debit; Cash, credit
Insurance Expense, debit; Accounts Receivable, credit
Answer
The Correct Option is Insurance Expense, debit; Cash, credit Answer Explanations When the expenses paid for the current period then, the expenses need to be debited where as cash to be credited. As in the given case the Insurance Expense paid for the current period then the Insurance Expenses to be Debited and Cash to be Credited.