At December 31, 2022, before any year-end adjustments, Dallis Company's Prepaid Insurance account had a balance of $5,800.It was determined that $2,600 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be:
A)$2,600.
B)$3,200.
C)$5,800.
D)$2,800.

Question

Quizplus · Accepted Answer

The expired portion of the prepaid insurance ($2,600) should be recognized as an insurance expense for the year.

At December 31, 2022, Before Any Year-End Adjustments, Dallis Company's