An Example of an Adjusting Entry for a Prepaid Item

An example of an adjusting entry for a prepaid item using the QBO journal is:

A) $$\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Expense } &\$ 1,000\\\text { Prepaid Insurance } & &\$ 1,000 & \\\end{array}$$
B) $$\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Prepaid Insurance} &\$ 1,000\\\text { Insurance Expense } & &\$ 1,000 & \\\end{array}$$
C) $$\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Expense} &\$ 1,000\\\text { Insurance Payable} & &\$ 1,000 & \\\end{array}$$
D) $$\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Insurance Payable} &\$ 1,000\\\text { Insurance Expense } & &\$ 1,000 & \\\end{array}$$