Prepaid Insurance Debit Or Credit Normal Balance. So, you need to record the amount as a prepaid expense. The type of account and normal balance of prepaid insurance would be.
This means that the debit balance in prepaid insurance at december 31 will be $2,000 (5/6 of the $2,400 cost), since this is the amount that has not yet expired. Does prepaid insurance carry a credit or. Interest payable uses credit for decrease of normal balance.