Light & Music Ltd. has insured its stock against damage by fire and water. The annual cost for insurance is £12,000 (12000 British Pounds). In January Light & Music Ltd. posts the entire sum to an Advance Payment account immediately after posting the invoice. This account is then gradually cleared throughout the year as an insurance payment of £1,000 is posted every month to the stock insurance account. Mr. Smith would like you to demonstrate how this can be handled as easily as possible.