Jay Company had no previous balance in their Prepaid Insurance account when they purchased a one year insurance policy for $6,000 on August 1st. What would be the adjusting entry made on December 31st? Hint: Assume adjusting entries were not made at the end of each month prior to December 31st. O Insurance Expense 3500 DR: Prepaid Insurance 2500 CR Prepaid Insurance 2500 DR; Insurance Expense 2500 DR Insurance Expense 2,500 DR; Prepaid Insurance 2500 CR Insurance expense 3500 DR; Insurance payable 3500 CR