Hi, I would like to know how to solve this question but I don't know where to start.

J Question 8 1. 5 pts The company pre-paid $ 40, 000 for a four - year insurance policy on January 1 , 2014 . At the end of 2017 , before the books were closed , it was discovered this full amount had been incorrectly expensed on January 1 , 2014 . What would be the adjustment to retained earnings on December 31 , 2017 to remedy this mistake ? Assume a 30% tax rate . D Question ? 0. 5 pts Would you debit or credit retained earnings for the adjustment calculated in question 8 ?) O Debit ` Credit