Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:

a.credit to Insurance Expense, $2,400

b.debit to Prepaid Insurance, $1,200

c.credit to Prepaid Insurance, $1,200

d.debit to Insurance Expense, $2,400