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forsale [732]
3 years ago
6

On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $55,400. During 2021, $93,000 was paid fo

r insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $45,500. Insurance expense for 2021 was:
Business
1 answer:
Oduvanchick [21]3 years ago
7 0

Based on the amount paid for insurance and the prepaid balance, Coolwear Inc. probably had an insurance expense of $102,900.

The insurance expense of the year can be calculated as:

<em>Closing prepaid insurance = Opening prepaid insurance + Amount paid for insurance - Insurance expense </em>

Solving will give:

<em>Insurance expense  = Opening prepaid insurance + Amount paid for insurance - Closing prepaid insurance </em>

= 55,400 + 93,000 - 45,500

= $102,900

In conclusion, insurance expense was $102,900.

<em>Find out more at brainly.com/question/14797686. </em>

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Option A

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