3 On September 1, a company paid the $12,000 premium on a one-year insurance policy with benefits beginning on that date. Assuming no previous adjustments have been made for the expired insurance, the correct adjusting entry on December 31, would be: Multiple Choice Account Title Insurance Expense Cash Account Title Insurance Expense Prepaid Insurance Account Title Insurance Expense Prepaid Insurance Debit 12,000 Debit 3,000 Debit 12,000 Credit 12,000 Credit 3,000 Credit 12,000