On July 1, a company purchased a five-year insurance policy for $3,600 with coverage starting immediately. The adjusting entry at the end of the first year is: Select one: o a. Debit Prepayments, $360; credit Insurance Expense, $360. O b. Debit Prepayments, $3,240; credit Insurance Expense, $3,240. O c. Debit Insurance Expense, $2,880; credit Prepayments, $2,880. O d. Debit Prepayments, $2,880; credit Insurance Expense, $2,880 e. Debit Insurance Expense, $720, credit Prepayments, $720