Help Save & Exit Submi anuary 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately.If the purchase was recorded Prepaid Insurance account, and the company records adjustments only at year end, the adjusting entry at the end of the first year is Multiple Choice Debit Prepaid Insurance, $1,800 credit Cash, $1800. Debit Insurance Expense, $360; credit Prepaid Insurance, $360 Debit Prepaid Insurance, $360, credit Insurance Expense, $360. Debit Insurance Expense, $360: credit Prepaid Insurance, $1,440 HP Product Status