Response to the following problem:
Under East Co.'s accounting system, all insurance premiums paid are debited to prepaid insurance. During the year, East records monthly estimated charges to insurance expense with credits to prepaid insurance. Additional information for the year ended December 31 is as follows:
Prepaid insurance at January 1 $105,000
Insurance expense recognized during the year 437,500
Prepaid insurance at December 31 122,500
What was the total amount of cash paid by East for insurance premiums during the year?