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 Prepaid Insurance. 7,500 Expense.... Insurance 7.500 o Insurance Expense. 7,500 Prepaid Insurance. 7,500 Insurance Expense 10,000 Prepaid Insurance 10,000 Insurance Expense. 2,500 Prepaid Insurance. 2,500 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 Prepaid Insurance. 7,500 Expense.... Insurance 7.500 o Insurance Expense. 7,500 Prepaid Insurance. 7,500 Insurance Expense 10,000 Prepaid Insurance 10,000 Insurance Expense. 2,500 Prepaid Insurance. 2,500