On March 31, 2015, the Turi Company Purchased a Two-Year

On March 31, 2015, the Turi Company purchased a two-year fire insurance policy. Turi recorded the purchase by debiting Prepaid Insurance and crediting Cash for $10,000. Which of the following adjusting entries should Turi prepare at the end of 2015?

A) Prepaid Insurance 3,750 Insurance Expense 3,750
B) Insurance Expense 3,750 Prepaid Insurance 3,750
C) Prepaid Insurance 5,500 Insurance Expense 5,500
D) Insurance Expense 5,000 Prepaid Insurance 5,000