9 ume that 17500 cash is pald for insurance to cover the nex

9. ume that $17,500 cash is pald for insurance to cover the next year. The appropriate debit and credit are O Debit prepaid insurance $17,500, credit cash $17,500 O Debit cash $17,500, credit prepaid insurance $17.500 O Debit insurance expense $17500, credit prepald insurance $17,500 O Debit prepaid insurance $17.500 credit insurance expense $17.500

Solution

Debit Prepaid Insurance $17500, Credit Cash $17500.

       Prepaid Insurance A/c    Dr.    $17500

                 To Cash A/c                              $17500

(Being Insurance Expence Paid in Advance)