7. On January 1, 2020, Peach Company purchased a five-year insurance policy for $5,000. If the cost was debited to Prepaid Insurance, the adjusting entry at the end of 2020 is A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800 B. Debit Prepaid Insurance, $1,000; credit Insurance Expense, $1,000 C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360 D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360 E. Debit Insurance Expense, $1,000, credit Prepaid Insurance $1,000