On May 1, Landon Supplies Inc. purchased a two year insurance policy for $24,000. The purchase of the insurance policy was recorded as a debit to Prepaid Insurance. The adjusting journal entry at May 31st to record the amount of insurance expired during May will include a

Question 3 options:

debit to Prepaid Insurance and credit to Insurance Expense for $1,000.

debit to Prepaid Insurance and a credit to Cash for $1,000.

debit to Insurance Expense and a credit to prepaid Insurance for $1,000.

debit to insurance expense and a credit to Cash for $1,000.