On January 1, a company purchased a five-year Insurance policy for $2,900 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 Debt Prepaid Insurance. $2,900, credit Cash, $2,900. O Debit insurance Expense, SS80: credit Prepaid Insurance, $580. Debit Prepaid insurance. 5580, credit Insurance Expense. 5580. Debit insurance Expense, $580, credit Prepaid Insurance, 52.320 Detit Poliurance $2.320, credit Insurance Expense, $2.320