On March 31, 20X8, your calendar year company takes out a 3-year insurance policy with a premium of $5,000 per year. The entire $15,000 is paid in advance on March 31, 20X8 and is recorded as prepaid insurance. On December 31, 20X8, you discover that the adjusting entry debited Insurance Expense for $5,000 and credited Prepaid Insurance for $5,000. Your correcting journal entry will: debit Prepaid Insurance for $1,250; credit Insurance Expense for $1,250 debit Prepaid Insurance for $3,750; credit Insurance Expense for $3,750 debit Insurance Expense for $1,250; credit Prepaid Insurance for $1,250 debit Prepaid Insurance for $5,000; credit Insurance Expense for $5,000 debit Insurance Expense for $3,750; credit Prepaid Insurance for $3,750 not be necessary because the original adjusting entry was correct