Mal de Mere Cruises purchased a five-year insurance policy for its ships on April 1, 2020 for $50,000. Assuming that April 1 is the effective date of the policy, the adjusting entry on December 31, 2020 is a. Prepaid Insurance... Insurance Expense.. b. Insurance Expense.. Prepaid Insurance. C. Insurance Expense.. Prepaid Insurance.. d. Insurance Expense.. Prepaid Insurance.. 7,500 7,500 7,500 7,500 10,000 10,000 2,500 2,500 ............