On October $1,2019,$ Adams Company paid $$4,920$ for a two$-$year insurance policy with the insurance coverage beginning on that date. As of December $31,2019,$ which of the following account balances are correct after adjusting entries have been made?

Multiple Choice

Prepaid insurance $$4,305,$ and Insurance expense $$615.$

Prepaid insurance $$4,920,$ and Insurance expense $$0.$

Prepaid insurance $$0,$ and Insurance expense $$4,920.$

Prepaid insurance $$2,460,$ and Insurance expense $$2,460.$