4 2 Premium recognition and unearned premium liability
In business, we may need to make a one-year advance payment for the insurance policy that we need to purchase. In this case, we need to make the journal entry for the insurance premium paid for next year by recognizing and recording the amount paid as an asset on the https://www.bookstime.com/articles/what-is-a-transposition-error balance sheet. Either method …
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