On January 1, 2020 Al-Isra Company paid a $1,200 for a one-year (12 months) fire insurance policy that will expire next year. If the company prepared the financial statements on December 31, 2020, then the adjusting entry is; Select one: Debit Prepaid Insurance $1,200 and Credit Insurance Expense $1200. Debit Insurance Expense $1,200 and Credit Prepaid Insurance $1200. Debit insurance Expense $100 and Credit Prepaid Insurance $100. Debit Insurance Expense $300 and Credit Prepaid Insurance $300