Your firm has been engaged to prepare the 2019 tax return for Mendoza Cannery, Inc. You have received Mendoza's trial balance and as you are scanning the trial balance for any Irregularities, you notice that the prepaid account has a credit balance of $37,000. When you ask the controller of Mendoza, she tells you that the prepaid account consists mostly of prepaid Insurance. For insurance, you prepay premiums for future coverage. What is probably the most logical explanation for this credit balance? Multiple Choice The company credited liability accounts when they should have been crediting the prepaid account O The company probably forgot to record a significant payment towards an insurance policy The company failed to make payments on their active Insurance policies The company has been under expensing their insurance expense