ACCOUNTING-Galt Insurance Company sells worker’s compensation insurance.

QUESTION

Galt Insurance Company sells worker’s compensation insurance. Customers pay Galt Insurance Company in advance before any insurance coverage is provided. Galt received $10,000 in April, 20X1 for insurance that will be provided between May 20X1 and April 20X2. In April, the journal entry to record the $10,000 cash receipt should include a credit to ________. (Points : 20)

ANSWER:

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