Question: 1 . On December 3 1 , 2 0 2 0 , Coolwear, Inc. had a balance in its prepaid insurance account of $ 4

1. On December 31,2020, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2021, $86,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was 42,000. Insurance expense for 2021 was:
A) $6,400.
B) $134,400.
C) $86,000.
D) $92,400.

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