Rado Inc. a manufacturer of heavy machinery, grants 2-year warranty on its products. The Estimated Liability for Product Warranty accounts shows the following entries for the year: Beginning balance P225,000, Provision during the year (quarterly accrual) 200,000. A review of the company's policy of accounting for warranties revealed that based on the company's past experience, warranty claims averaged 5% on net sales. Moreover, the company provides for a quarterly accrual of the estimated warranties expenditure based on rough estimates. The following additional information is available from the company's records: Gross Sales P7,250,000, Sales returns and allowances 150,000, Cost of Sales 3,678,000. The cost of sales included P415,500 cost of servicing the warranty claims for the year. QUESTION: What is the correct balance of the estimated liability for product warranty at the end of the year?