If the Prepaid Insurance Account Had an Unadjusted Normal Balance

Multiple Choice

If the Prepaid Insurance account had an unadjusted normal balance of $3,400, and an adjustment was made crediting the account for $800, then the account would appear on the work sheet as a(n)

A) $2,600 debit balance in the Balance Sheet columns.
B) $800 credit balance in the Income Statement columns.
C) $2,600 credit balance in the Adjusted Trial Balance columns.
D) $800 credit balance in the Balance Sheet columns.
E) $2,600 debit balance in the Income Statement columns.