How much insurance expense will be recorded for accounting

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Reference no: EM13131876

A company purchased a two-year fire insurance policy on August 1, 2006. It paid the $2,880 premium in cash on the same date and recorded the entry with a debit to Prepaid Insurance for $2,880. The company has adopted a 12-month accounting period ending on December 31 of each year. How much insurance expense will be recorded for the accounting periods ending December 31, 2007, and December 31, 2008, if the company uses the accrual basis of accounting?

Reference no: EM13131876

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