Harrod Company paid $5,500 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,500, and no adjustments had been made previously. The adjusting entry required on December 31 is: Multiple Choice O Debit Prepaid Insurance, $2,750; credit Insurance Expense, $2,750. Debit Insurance Expense, $2,750; credit Prepaid Insurance, $2,750. Debit Insurance Expense, $1,375; credit Prepaid Insurance, $1,375. Debit Prepaid Insurance, $1,375; credit Insurance Expense, $1,375. Debit Cash, $5,500; Credit Prepaid Insurance, $5,500