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Purple Co. purchased a 12 month policy for $4,800 on September 1st. When Purple Co. is preparing adjusting journal entries for the first time on

Purple Co. purchased a 12 month policy for $4,800 on September 1st. When Purple Co. is preparing adjusting journal entries for the first time on December 31st, what would the prepaid expense adjusting journal entry include?

Debit Prepaid Insurance $1,600 Credit Insurance Expense $1,600 Credit Prepaid Insurance $1,600 O Debit Prepaid Insurance $4,800

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