Desert Company reports the following for the year 202X:

	1/1/202X	12/31/202X
Prepaid Insurance	$1,500	$1,800
Insurance Payable	$1,800	$1,600

Desert had Insurance Expense of $12,000 for 202X. In order to convert from the accrual to cash paid for insurance, Desert would do which of the following?

Group of answer choices

Subtract the change in Prepaid Insurance and add the change in Insurance Payable

Subtract the change in Prepaid Insurance and subtract the change in Insurance Payable

Add the change in Prepaid Insurance and subtract the change in Insurance Payable

Add the change in Prepaid Insurance and add the change in Insurance Payable