Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense. Information for the year ended DECEMBER 31, 2020 is as follows: prepaid insurance, beg. is...

Under ABC Company’s accounting system, all insurance premiums paid
are charged to insurance expense. Information for the year ended
DECEMBER 31, 2020 is as follows: prepaid insurance, beg. is P150,000;
renewal of insurance charged to expense during the year applicable for
the period April 1, 2020 - 2021 is P500,000. What is the insurance expense
using the accrual basis accounting?

A. P275,000
B. P500,000
C. P525,000
D. P650,000
E. answer not given