Early in 2018, Ashland Granite discovered that a five-year insurance premium payment of $750,000 at the beginning of 2015 was debited to insurance expense. The correcting entry would include:

Multiple Choice

A debit to prepaid insurance of $750,000.

A debit to insurance expense of $300,000.

A debit to prepaid insurance of $450,000.

A credit to retained earnings of $300,000.