The balance in the Prepaid Insurance account on December 31, 2022, is $9,800. This was for a one-year insurance policy purchased for $16,800 and in effect on July 1, 2022. What is the required adjustment amount on December 31st? Multiple Choice Debit Insurance expense and Credit Prepaid Insurance for $1,400 No adjustment is required Debit Prepaid Insurance and Credit insurance expense for $1400 Debit Insurance Expense and Credit Prepaid Insurance for $9,800 Debit Insurance Expense and Credit Prepaid Insurance for $7,000