Heat Corp had the following information:

Allowance for doubtful accounts, 1/1 100,000 Sales returns 250,000 Sales on account 4,750,000 Accounts deemed uncollectible 50,000 Sales discount 500,000 Recovery of accounts written off 25,000

The entity recorded doubtful accounts expense at the rate of 5% of net credit sales. What amount should be reported as allowance for doubtful accounts on December 31?

a. P225,000 b. P275,000 c. P300,000 d. P312,500