Smokey Company purchases a one$-$year insurance policy on July $1$ for $$4,572.$ The adjusting entry on December $31$ is

a$.$ debit Insurance Expense, $$2,286$; credit Prepaid Insurance, $$2,286$

b$.$ debit Insurance Expense, $$1,905$; credit Prepaid Insurance, $$1,905$

c$.$ debit Prepaid Insurance, $$2,286$; credit Cash, $$2,286$

d$.$ debit Insurance Expense, $$2,667$; credit Prepaid Insurance, $$2,667$