On April 1, 2010, Milligan Company Paid $5, 280 for a Two-Year

On April 1, 2010, Milligan Company paid $5, 280 for a two-year insurance policy.On that date, the company charged an asset account.The correct December 31, 2010, adjusting entry would be

A)
$\begin{array}{cc}\text { Prepaid Insurance } & 3,300 \\\text { Insurance Expense } && 3,300\end{array}$
B)
$\begin{array}{cr}\text { Insurance Expense } & 1,980 \\\text { Prepaid Insurance } && 1,980\end{array}$
C)
Prepaid Insurance $\quad 1,980$
Insurance Expense $\quad 1,980$
D)
$\begin{array}{cc}\text { Insurance Expense } & 3,300 \\\text { Prepaid Insurance } & 3,300\end{array}$