On December 31, 2015, Dab Industries reported a prepaid insurance expense account balance of $2,500 and during 2016 the overall account balance (i.e. reportedby the company on its financial statements) increased by $300. During 2016, cash payments for future insurance coverage totaled $5,000. Select the answer below that correctly presents the December 31, 2016 adjusting entry.

	A.	Prepaid Insurance Expense (dr) $300 Insurance Expense (cr) $300
	B.	Insurance Expense (dr) $4,700 Prepaid Insurance Expense (cr) $4,700
	C.	Prepaid Insurance Expense (dr) $5,000 Cash (cr) $5,000
	D.	none of the answer choices provided are correct.
	E.	Insurance Expense (dr) $5,300 Prepaid Insurance Expense (cr) $5,300