6 00:46:23 The balance in the insurance expense account before adjustment at the end of the year is $6,500, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is: Multiple Choice Debit Prepayments, $3,250; credit Insurance Expense. $3,250. Debit Insurance Expense. $3,250; credit Prepayments, $3,250 Debit Insurance Expense. $1,625; credit Prepayments, $1.625