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On August 1, Yellow Company paid $6,320 for 3-year insurance policy. On that date, the company recorded the payment in the Insurance Expense account. In

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On August 1, Yellow Company paid $6,320 for 3-year insurance policy. On that date, the company recorded the payment in the Insurance Expense account. In the adjusting entry at December 31, there would be a: Credit to Prepaid Insurance for $2,107 Credit to Prepaid Insurance for $527 Debit to Insurance Expense for $175 o Credit to Insurance Expense for $5,442

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