Jack is the house manager for Beta Theta Pi, a social fraternity. He is negotiating with Jackson Hauling for trash pickup services at the fraternity house. He prefers a three-days-per-week trash pickup schedule, but he is also willing to accept a two-days-per-week arrangement. While negotiating with the company, he asks for daily trash pickup service. The three-day trash pickup schedule is Jack's:

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.