A Parvati's business insurance is paid annually, with the bill running from 1 June to 31 May each year. Her accounting year-end is 31 December. Her insurance transactions over a two-year period are as follows:

Date paid Amount (£) Period covered 6 June 20X5 3 724 1.6.X5-31.5.X6 8 June 20X6 4942 1.6.X6-31.5.X7 Parvati pays the bill for £4942, but queries the large increase over the previous year with the insurance company. The company discovers that it has made a mistake and sends her a refund of £836 on 17 September 20X6.

What is the amount of insurance expense to be included in Parvati's profit and loss account for the year ending 31 December 20X6? (Work to the nearest £.)

a) £5 055

b) £3 883

c) £4435

d) £3 947.