On October 1, 20X7, XYZ Co. paid $108,000 for insurance for the next 12 months (from October 1, 20X7 through September 30, 20X8), initially recording the entire insurance payment as prepaid insurance on October 1, 20X7. If adjusting entries are made at the end of each month to record insurance expense, the balance in the prepaid insurance account on February 1, 20X8 would be a. $9,000 b. $72,000 c. $36,000 d. $81,000