Monday, December 26, 2011

What are the two methods for recording prepaid expenses?

The two methods for recording prepaid expenses have to do
with the general ledger account that is initially debited at the
time of the cash payment. The two methods or approaches are: 1.
debit an asset account (such as Prepaid Insurance) which is the
balance sheet method, or 2. debit an expense account (such
as

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