Iowa Company sells its products with reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Information for 2020

is as follows:

Containers held by customers in 2020 from deliveries in:

2018 P 75,000

2019 215,000

2020 390,000

Containers returned in 2020 from deliveries in

2018 P 45,000

2019 125,000

2020 143,000

Prepare all required entries in 2020 in connection with the containers assuming that the amount charged as deposit is equivalent to 120% of the cost of each returnable container

and compute the liability for containers on December 31, 2020.