On October 1, 20x1, the Jernnigan Company paid $4800 for a one-year insurance policy. On December 31, 20x1, the adjusting entry would include
a. a debit to Insurance Expense, $3,600
b. a credit to Insurance Payable, $1,200
c. a credit to Prepaid Insurance, $1,200
d. a debit to Insurance Expense, $4000
