On January 2, 2018, Sheridan purchased a general liability insurance policy for $2736 for coverage for the calendar year. The entire $2736 was charged to Insurance Expense on January 2, 2018. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2018, will be:

A:Prepaid Insurance 228Insurance Expense228

B:Insurance Expense 2508Prepaid Insurance2508

C:Prepaid Insurance 2508Insurance Expense2508

D:Insurance Expense 228Prepaid Insurance228