On October 1, 20X7, XYZ Co. purchased a fire insurance policy for $8,800 covering business property for the next 8 months (from October 1, 20X7 through May 31, 20X8), recording the entire insurance payment as prepaid insurance on the purchase date. If adjusting entries are made monthly, what adjusting journal entry is needed on November 30, 20X7? a. Debit: Insurance expense.......1,100 Credit: Cash........1,100 b. Debit: Insurance expense.........2,200 Credit: Cash........2,200 c. Debit: Insurance expense.8,800 Credit: Prepaid insurance...8,800 d. Debit: Insurance expense...1,100 Credit: Prepaid insurance......1,100