Taylor Foods purchased a two$-$year fire and extended coverage insurance policy on August $1,2023,($i$.$e$.,$ coverage begins on August $1)$ and charged the $$4,200$ premium to Prepaid Insurance Expense. At its December $31,2023,$ year$-$end, Taylor Foods would record which of the following adjusting entries?

Select one:

a$.$

Dr Prepaid Insurance $875$

Cr Prepaid Insurance Expense $875$

b$.$

Dr Insurance Exp $875$

Dr Prepaid Insurance Expense $3325$

Cr Insurance Payable $4,200$

c$.$

Dr Insurance Expense $3,325$

Cr Prepaid Insurance Expense $3,325$

d$.$

Dr Insurance Expense $875$

Cr Prepaid Insurance Expense $875$