Page 2 of 10 Question 2 (1 point) Beach Company paid $3,790 on June 1, 20x8 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 20x8 adjusting entry is: Debit Prepaid Insurance and credit Insurance Expense. $1.105 Debit Insurance Expense and credit Prepaid Insurance, $1.105 Debit Insurance Expense and credit Prepaid Insurance, $2,685 Debit Prepaid Insurance and credit Insurance Expense, $2,685 Next Page Page 2 of 10