Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and charged the $2,640 premium to Insurance expense.

 Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and charged the $2,640 premium to Insurance expense. At its December 31, 2021, year-end, Yummy Foods would record which of the following adjusting entries?

 Answer

 

Explanation

 

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