On 1 October 2021 WorldCom Ltd paid $2400 for a 12-month insurance premium. The $2400 was initially recorded in the insurance expense account. The adjusting entry required to accurately represent the expired insurance on 31 December 2021, the end of the accounting period, is:

Select one:

DR Insurance expense $200;

CR Prepaid insurance $200

DR Prepaid insurance $1200;

CR Insurance expense $1200

DR Prepaid insurance $600;

CR Insurance expense $600

DR Prepaid insurance $1800;

CR Insurance expense $1800