3 (2 points) On April 1, 20x8, Magnolia Inc. purchased a 3-year insurance premium of $5,000. At the time, the bookkeeper recorded the following journal entry: Dr. Insurance Expense Cr. Cash $5,000 $5,000 What is the adjusting entry the bookkeeper should post at December 31, 20x8 in order to adjust the prepaid insurance and insurance expense accounts to the appropriate balance? Dr. Insurance Expense: $3,750 Cr. Prepaid Insurance $3,750 Dr. Prepaid Insurance $3,750 Cr. Insurance Expense $3,750 Dr. Prepaid Insurance $1,250 Cr. Insurance Expense $1,250 Dr. Insurance Expense $1,250 Cr. Prepaid Insurance $1.250 O