$12-$month insurance policy was purchased on Dec. $1$ for $$3,600$ and the Prepaid insurance account was increased for the payment. Demonstrate the required adjusting journal entry on Dec. $31$ by selecting from the choices below. Cash would be credited for $$3,600.$ Insurance expense would be debited for $$300.$ Prepaid insurance would be credited for $$3,600$ Insurance expense would be debited for $$3,600.$