The trial balance of Sports Ltd. at the June 30, 2020 (end of the current fiscal year) shows prepaid insurance $42,000, however, at the end of fiscal year, it has been discovered that insurance premium expired during the year 3,200. In this case, which statement is correct for adjusting the entry?

Select one:

a. Insurance expense $3,200 DR, Prepaid insurance $3,200 CR and balance in adjusted trial for prepaid insurance $38,800 Dr.

b. Insurance expense $3,200 CR, Prepaid insurance $3,200 CR and balance in adjusted trial for prepaid insurance $38,800 Dr.

c. Insurance expense $3,200 DR, Prepaid insurance $3,200 CR and balance in adjusted trial for prepaid insurance $38,800 Cr.

d. Insurance expense $3,200 DR, Prepaid insurance $3,200 DR and balance in adjusted trial for prepaid insurance $38,800 Dr.