On October $1,20$X$1,$ a firm purchased a $1-$year insurance policy for $$2,400$ and paid the full premium in advance. The adjustment needed on December $31,20$X$1,$ to report the amount of insurance that had expired, would be:

Multiple Choice

a debit to Prepaid Insurance for $$600$ and a credit to Insurance Expense for $$600.$

a debit to Insurance Expense for $$600$ and a credit to Prepaid Insurance for $$600.$

a debit to Insurance Expense for $$2,400$ and a credit to Cash for $$2,400.$

a debit to Insurance Expense for $$1,800$ and a credit to Prepaid Insurance for $$1,800.$