On January 1, 2019 Al-Isra Company paid a $2,400 for a one-year (12 months) fire insurance policy that will expire next year. If the company prepared the financial statements on December 31, 2019, then the adjusting entry is; Select one: Debit Insurance Expense $800 and Credit Prepaid Insurance $800. Debit Insurance Expense $2,400 and Credit Prepaid Insurance $2,400. Debit Prepaid Insurance $2,400 and Credit Insurance Expense $2,400. Debit Insurance Expense $200 and Credit Prepaid Insurance $200