Walnut, Inc. purchased a three-year insurance policy on September 1, 2012 for $7,200. Assuming that Walnut debited the prepaid insurance account in recording the original transaction, the adjusting entry on September 31, 2012, the company's year end, will include a Debit to insurance expense for $7,000 Credit to prepaid insurance for $200 Debit to prepaid insurance for $200 Credit to insurance expense for $7,000 4 points