Owl Co. completed an internal audit of its bookkeeping system that uncovered an error on December 31, before the books were closed. A three-year insurance policy for $180,000 acquired on August 1 of the current year was recorded by debiting insurance expense.Owl's 12/31 entry to correct the initial entry will include which of these:

Group of answer choices

Debit Insurance Expense for $25,000

Debit Prepaid Insurance for $25,000

Credit Insurance Expense for $155,000

Credit Prepaid Insurance for $155,000