Help Save& Exit Subrmit On January 1, a company purchased a five- year insurance policy for $2.000 with coverage starting immediately,Ii the purchase was recorded in the urance 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, $2,000, credit Cash $2.000 Debit Insurance Expense, $400, credit Prepaid Insurance, $400 Debit Insurance Expense, $400, credit Prepaid Insurance, $1,600 Debit Prepaid Insurance, $1600, credit Insurance Expense, $1,600 Debit Prepaid Insurance, $400, credit Insurance Expense, $400