Dana Sherwin is the owner of a local cafeteria. The business paid $$2,400$ for a one$-$year insurance policy. How should this transaction be

recorded in the business accounts?

Select one:

a$.$ Increase Prepaid Insurance $$2,400($asset$)$; decrease Cash $$2,400($asset$)$

b$.$ Increase Prepaid Insurance $$2,400($liability$)$; decrease Cash $$2,400($asset$)$

c$.$ Decrease Cash $$2,400($asset$)$; decrease Accounts Payable $$2,400($liability$)$

d$.$ Decrease Cash $$2,400($asset$)$; increase Accounts Payable $$2,400($liability$)$