Three months of insurance were purchased on October 1st for $1,500 recorded in a Prepaid insurance account. What is the adjusting entry on December 31st to recognize that the three months of insurance has expired?

a. Debit Prepaid Insurance $1,500 and credit Cash $1,500

b. Debit Cash $1,500 and credit Prepaid Insurance $1,500

c. Debit Insurance Expense $1,500 and credit Cash $1,500

d. Debit Insurance Expense $1,500 and credit Prepaid Insurance $1,500