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On december 31, 20x1, ABC sold goods for P20,000 to XYZ on account . To induce sale, ABC provides its buyers the right to return goods within 30 days upon purchase if the buyers are not satisfied with the goods.
Question 1: ABC can reliably estimate that 20% of the goods sold will be returned within the agreed period of time. However, 25% of the goods are actually returned on January 5, 20x2. How much is the net accounts receivable recognized on the date of sale?
Option a. 20,000
Option b. 16,000
Option c. 15,000
Option d. 0
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