On January $1,2023,$ Ryan Company paid the premium on a two$-$year insurance policy in the amount of $$7,400.$ At that time, the full amount paid was recorded as prepaid insurance. After recording the adjusting entry for the insurance policy on December $31,2023,$ what would be the balance in Ryan Company's prepaid insurance account?

Multiple Choice

$$3,700$

$$7,400$

$$2,700$

$$2,600$