On April 1, 2015, Miller Company paid $6,280 for a two-year insurance policy. On that date, Miller recorded the purchase by debiting Prepaid Insurance and crediting Cash. The correct December 31, 2015, adjusting entry would be
A) Prepaid Insurance 3,140Insurance Expense 3,140
B) Insurance Expense 2,355Prepaid Insurance 2,355
C) Prepaid Insurance 2,355Insurance Expense 2,355
D) Insurance Expense 3,925Prepaid Insurance 3,925
B
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