Carol, the accountant for Cool Pte. Ltd. recorded insurance expense transaction as follows: DR Insurance expense CR Bank $63,000 $63,000 The above insurance is paid for the period starting from 1 August 2021 to 28 February 2022. If the company's year-end is 31 December 2021, which of the following is the best adjusting entry to be passed on 31 December 2021? 1) $18,000 $18,000 $18,000 $18,000 DR Prepaid expense CR Insurance expense 2) DR Insurance expense CR Prepaid expense 3) DR Accrued expense CR Insurance expense DR Insurance expense CR Accrued expense $12,600 $12,600 $12,600 $12,600 4)