On December 31, 2014, Avery Corporation paid $27,000 for next year's insurance policy. This transaction should be recorded as follows by Avery:

Is it A,B, C or D?

	General Journal	Debit	Credit
A.	Insurance expense	27,000
	Insurance payable		27,000
B.	Prepaid insurance	27,000
	Insurance payable		27,000
C.	Prepaid insurance	27,000
	Cash		27,000
D.	Insurance expense	27,000
	Cash		27,000

rev: 04_17_2015_QC_CS-13869