Terrance determined $$1,000$ of Prepaid Insurance was used as of January $31.$

What would the adjusting entry be$?$

a$.)$

Insurance debited and Insurance Expense credited, both for $$1,000.$

b$.)$

Insurance Expense debited and Accounts Payable credited, both for $$1,000.$

c$.)$

Insurance Expense credited and Prepaid Insurance debited, both for $$1,000.$

d$.)$

Insurance Expense debited and Prepaid Insurance credited, both for $$1,000$