Knight Company began operations on July 1.20x5 and prepares monthly financial statements. It has the following partial unadjusted trial balance at July 31, 20x5: Debit Credit Prepaid Insurance $5786 Unearned Service Revenue $2.900 The balance in the prepaid insurance account relates to a 1-year insurance policy, effective July 1, 20x5. Which of the following would be the correct adjusting journal entry at July 31, 20x5 with respect to this insurance policy? Select one: a. Debit Prepaid Insurance $482 and Credit Insurance Expense $482 b. Debit Insurance Expense $482 and Credit Prepaid Insurance $482 c. Debit Prepaid Insurance $5786 and Credit Cash $5786 d Debit Insurance Expense $5786 and Credit Cash $5786