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-   -   What is the journal entry for amortization of insurance? (https://www.askmehelpdesk.com/showthread.php?t=505685)

  • Sep 7, 2010, 06:01 PM
    grace.device
    What is the journal entry for amortization of insurance?
    I am confused if what is the credit account I'm going to used.. is it to credit prepayments or amortization account?
  • Sep 7, 2010, 08:27 PM
    morgaine300

    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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