I am confused if what is the credit account I'm going to used.. is it to credit prepayments or amortization account?
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I am confused if what is the credit account I'm going to used.. is it to credit prepayments or amortization account?
You don't amortize insurance - you expense it.
When you purchase insurance in advance, it's prepaid insurance, which is an asset account because you still have coverage (which has a worth) coming to you. As it expires, you remove it from the prepaid account and expense it.
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