Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2020 for $3,000. At March 31, 2020, the adjusting journal entry to record expiration of this asset will include a

debit to Prepaid Insurance and a credit to Cash for $ 3,000.

debit to Prepaid Insurance and a credit to Insurance Expense for $ 300.

debit to Insurance Expense and a credit to Prepaid Insurance for $ 250

debit to Insurance Expense and a credit to Cash for $ 250.