On January 1, a company purchased a five year insurance policy for $2,300 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year end, the adjusting entry at the end of the first year is Multiple Choice Debit Insurance Expeme, 5460, credit Prepaid burence, $1840 Debit Prepold Insurance, 8460, credit Insurance Expense, 5460 Debit Prepold Insurance, $2.300 credit Cash, $2,900 Debu Prepaid trurance, $1840, credit insurance Expense, 51,840 Debt Insurance Expense. 5460, credit Prepaid in 200 D 21 Next >