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Mathematics, 20.10.2020 21:01 20stirltrer

Olympic Sports Wear purchased a three month (December through February) insurance policy on December 1, 2012 at a cost for the quarterly period of $1,500. The accounting clerk debited the Prepaid Insurance account and credited cash for $1500 on December 1. It is now the end of the accounting year (December 31, 2012) and only one month’s insurance cost of $500 has expired. Write the adjusting entry below:

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