Assume Idaho Company Recorded the Following Adjusting Journal Entry at Year-End

Assume Idaho Company recorded the following adjusting journal entry at year-end: If the beginning balance in prepaid insurance was $500,and $2,500 was paid for an insurance premium during the year,what is the ending balance in the prepaid insurance account after the above adjusting entry?

A) $1,200.
B) $700.
C) $2,200.
D) $1,000.