Wilson Company paid $5,000 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. The adjusting entry required on December 31 is: Multiple Choice Debit Insurance Expense, $2.500. credit Prepaid Insurance, $2,500. Debit Prepaid Insurance, $2500; credit Insurance Expense. $2.500 Debit Insurance Expense. S1.250. credit Prepoid Insurance. $1.250.