The balance in the prepaid insurance account, before adjustment at the end of the year, is $9,050.
Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:

A. The amount of insurance expired during the year is $6,880.

A. The amount of insurance expired during the year is $6,880.

Debit Insurance Expense for the amount
Credit Prepaid Insurance for the amount