The following account balances were prepared by a certified bookkeeper for Mutt and Jeff Company as of December 31, 2020: Cash P 800,000; Accounts payable P 750,000; Accounts receivable (net) P 522,000; Long-term liabilities P 1,000,000; Inventories P 570,000; Residual interest P 2,185,000; Investments P 763,000; Equipment (net) P 960,000 and Patents P 320,000. Additional information are as follows: (1) Cash includes the cash surrender value of a life insurance policy for P 94,000, and bank overdraft of P 25,000 has been deducted; (2) The net accounts receivable includes the following: an accounts receivable debit balance of P 600,000 and an accounts receivable credit balance of P 40,000; (3) Inventories do not include goods costing P 30,000 shipped out on consignment. Receivables of P 30,000 were recorded on these goods; (4) Investments include investments in ordinary shares,

trading P 190,000, available-for-sale P 483,000 and sinking fund of P 90,000.

How much should be the total current liabilities?

a. P 750,000

b. P 775,000

c. P 815,000 - this is the answer (kindly show some solution how did this came out)

d. P 1,815,000

note: Please show solution of the provided answer above