Under Maurice Sabio Vintage Clothing Services accounting system, all insurance premiums paid are

debited to prepaid insurance. For interim financial reports, Maurice Sabio makes monthly estimated

charges to insurance expenses with credits to prepaid insurance. Additional information for the year

ended Dec. 31, 2019 is as follows:

Prepaid insurance at Dec. 31, 2018 P110,000

Charges to insurance expense during 2019 437,500

(including a year-end adjustment of P10,500)

Prepaid insurance at Dec. 31, 2019 120,500

What was the total amount of insurance premiums paid by Maurice Sabio during 2019?

A. P327,500

B. P427,000

C. P437,500

D. P448,000