Is Insurance Expense Debit Or Credit. Likewise, the company can make insurance expense journal entry by debiting insurance expense account and crediting prepaid insurance account. Expenses are considered the cost of doing business and include things such as office supplies, insurance, rent, payroll expenses, and postage debit
In effect, a debit increases an expense account in the income statement and a credit decreases it. Applying the above mentioned modern rule of accounting i believe the answer to your question is that it’s a debit. Liabilities, revenues, and equity accounts have a natural credit balance.