Prior to recording adjusting entries, the Prepaid Insurance account had a $22,359 debit balance. The remaining amount of insurance that has not lapsed (and will apply to the next accounting period) is $10,359. The required adjusting entry is:

A) Debit Prepaid Insurance $12,000 and credit Insurance Expense $12,000.

B) Debit Insurance Expense $22,359 and credit Prepaid Insurance $22,359.

C) Debit Prepaid Insurance $22,359 and credit Insurance Expense $22,359.

D) Debit Insurance Expense $12,000 and credit Prepaid Insurance $12,000.

E) None of the above.