18.) Easy Company sells directly to retail customers. On January 1, 2013, the balance of the accounts receivable was P2,070,000 while the allowance for doubtful accounts was credit of P78,000. The following data are gathered: Credit sales Writeoffs Recoveries 2010 11,100,000 260,000 22,000 2011 12,250,000 295,000 37,000 2012 14,650,000 300,000 36,000 2013 15,000,000 310,000 42,000 Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. What amount should be reported as allowance for doubtful accounts on December 31, 2013? a. 110,000 b. 378,000