Question 7 0.5 pts Cromartie Corporation purchases a two-year insurance policy on July 1, 2018. At the time, they recorded the transaction as a debit to Insurance Expense and a credit to Cash for $6,000. What adjusting entry should they make on December 31, 2018? O No adjustment is necessary Debit Insurance Expense (Ret. Earn) and credit Prepaid Insurance for $1,500 Debit Prepaid Insurance and credit Insurance Expense (Ret. Earn) for $4,500 O Debit Prepaid Insurance and credit Cash for $4,500