Johnson Company paid $24,000 on 06/01/2015 for a 2-year insurance policy and recorded the entire amount as Insurance Expense. The 12/31/2015 adjusting entry is

Select one:

A. Debit Insurance Expense and credit Prepaid Insurance, $17,000

B. Credit Insurance Expense and debit Prepaid Insurance, $17,000

C. Debit Insurance Expense and credit Prepaid Insurance, $7,000

D. Credit Insurance Expense and debit Prepaid Insurance, $7,000