A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. O Insurance expense would be debited for $300 Insurance expense would be debited for $3,600, O Prepaid insurance would be credited for $3.600 O Cash would be credited for $3,600