If i am adjusting my prepaid expense, i would debit my prepaid expenses for the amount im adjusting but what would i credit? I knwo normally you would credit prepaid insurance or whatever the expense is for but i do not have an account of pre-paid insurance..is there such a thing of making an account called pre-paid assets?

The adjusting entry is:

Debitt the appropriate Expense account for the amount.
Credit the PrePaid acocunt for the amount used in the period.

Example: PrePaid Rent:

Debit Rent Expense for the amount used
Credit PrePaid Rent for the amount.