Faubert Company began operations on January 1, Year 1. The company has drafted its Year 5 comparative financial statements.
Adjusting Journal Entries have been recorded; the Year 5 books are still open. Faubert will be audited for the first time. Auditors have discovered the following possible errors:
An $18,000 insurance premium was paid on October 1, Year 4, for a policy that expires on September 30, Year 7. The premium was charged to Insurance Expense when paid. No adjustments have been recorded since the payment date.
What is the correcting journal entry? If no correcting journal entry is needed, indicate "No CJE."