Albinson Company paid $96,000 for a two-year insurance policy on October 1 and recorded the $96,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Albinson make on December 31, the end of the accounting period (no previous adjustment has been made)?

Select one: A. Insurance Expense 12,000 Prepaid Insurance 12,000

B. Insurance Expense 48,000 Prepaid Insurance 48,000

C. Prepaid Insurance 12,000 Insurance Expense 12,000

D. Prepaid Insurance 84,000 Insurance Expense 84,000