11) at december 31, 2025, before any year - end adjustments, a1 supply company’s prepaid insurance account…

11) at december 31, 2025, before any year - end adjustments, a1 supply 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) $2,800. b) $2,600. c) $3,200. d) $5,800.

11) at december 31, 2025, before any year - end adjustments, a1 supply 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) $2,800. b) $2,600. c) $3,200. d) $5,800.

Answer

Explanation:

Step1: Identify expired amount

The amount of prepaid insurance that has expired is the amount to be recognized as insurance expense.

Step2: Determine expense amount

Given that $2,600 of the prepaid insurance has expired, this is the adjusted balance for insurance expense.

Answer:

b) $2,600