3. Annual casualty insurance premiums were $80,000 for 2014. However, the insurance carrier was only paid $20,000 even though it was recorded as though the entire premium had been paid. The difference...

3. Annual casualty insurance premiums were $80,000 for 2014. However, the insurance carrier was only paid $20,000 even though it was recorded as though the entire premium had been paid. The difference of $60,000 that was not paid was then recorded as a payment toward the outstanding fictitious account receivable balance of Alcor Corporation [see item (1) above].