If workers compensation insurance if figured as a percentage of payroll (0.2% or .002 as a decimal) for the year and payroll is expected to be $185,000 for the year, give the needed journal entry for 1 Jan to record workers compensation insurance in cash.

Debit cash $370, Credit Workers Compensation payable $370

Debit Workers Compensation $370, Credit accounts payable $370

Debit Workers Compensation expense $370, Credit cash $370

Debit Workers Compensation payable $370, Credit Workers Compensation expense $370

None of the above are correct