Knight Company began operations on July 1, 20x5 and prepares monthly financial statements. It has the following partial unadjusted trial balance at July 31, 20x5: Credit Prepaid Insurance Unearned Service Revenue Debit S7982 $2,900 The balance in the prepaid insurance account relates to a l-year insurance policy, effective July 1, 20x5. Which of the following would be the correct adjusting journal entry at July 31, 20x5 with respect to this insurance policy? Select one: a. Debit Prepaid Insurance $665 and Credit Insurance Expense $665 b. Debit Insurance Expense $7982 and Credit Cash $7982 c. Debit Insurance Expense $665 and Credit Prepaid Insurance $665 d. Debit Prepaid Insurance $7982 and Credit Cash $7982 Check