On January 1, a company purchased a five year insurance policy for $3.700 with coverage starting immediately if the purchase was recorded in the Prepaid insurance account, and the company records adjustments only at year and the adjusting entry at the end of the first year is Mille Choice Debit $2.960, credt Insurance Expense, $2,950 Debit Insurance Expense 5790.creat Prepaid irrence. $2.900 Deborahance 5740 Credit Insurance Expense 5740 Debt insurance $3.700.crean con $1,700 0 Dubtitrance Expense 5740; credit Prepaid Insurance 5740