7. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: on Select one: O a. Debit Insurance Expense, $360, credit Prepaid Insurance, $360 b. Debit Prepaid Insurance, $360; credit Insurance Expense $360. Oc. Debit Prepaid Insurance $1,440, credit Insurance Expense, $1,440 d Debit Prepaid Insurance, $1,800, credit Cash $1,800