Knight Corp. bought a one$-$year insurance on March $1,2022$ which took effect on

the same day. The total cost of the insurance was $$7,200$ and was paid with cash in

full. The total cost was debited to Prepaid Insurance. Assuming Knight Corp. records

adjusting journal entries annually, what adjustment is needed to the fiscal year end,

December $31,2022?$

a$)$ Debit Accrued Expense $$7,200$ and credit Prepaid Insurance $$7,200.$

b$)$ Debit Insurance Expense $$600$ and credit Prepaid Insurance $$600.$

c$)$ Debit Prepaid Insurance $$600$ and credit Insurance Expense $$600.$

d$)$ Debit Insurance Expense $$6,000$ and credit Prepaid Insurance $$6,000.$

e$)$ Debit Prepaid Insurance $$6,000$ and credit Insurance Expense $$6,000.$