Ghiou Company paid 4,800 on June 1, 2015 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2015 adjusting entry is

a. debit Insurance Expense and credit Prepaid Insurance, 1,400.

b. debit Insurance Expense and credit Prepaid Insurance, 3,400.

c. debit Prepaid Insurance and credit Insurance Expense, 1,400

d. debit Prepaid Insurance and credit Insurance Expense, 3,400.