ok k ht nces ompany paid... Harrod Company paid $6,700 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $6,700, and no adjustments had been made previously. The adjusting entry required on December 31 is: Multiple Choice Debit Cash, $6,700; Credit Prepaid Insurance, $6,700. Debit Prepaid Insurance, $1,675; credit Insurance Expense, $1,675. Debit Insurance Expense, $1,675; credit Prepaid Insurance, $1.675. Debit Cash, $6,700; Credit Prepaid Insurance, $6,700. O Debit Prepaid Insurance, $1,675; credit Insurance Expense, $1,675. Debit Insurance Expense, $1,675; credit Prepaid Insurance, $1,675. Debit Insurance Expense, $3,350; credit Prepaid Insurance, $3,350. Debit Prepaid Insurance, $3,350; credit Insurance Expense, $3,350