Octopus Retail Company sells goods for cash, on normal credit (2/10, n/30). However, on July 1, 20x4, the company sold a used computer for P22,000; the inventory carrying value was P4,400. The company collected P2,000 cash and agreed to let the customer make payments on the P20,000 whenever possible during the next 12 months. The company management stated that it had no reliable basis for estimating the probability of default. The following additional data are available: (a) collections on the instalment receivable during 20x4 were P3,000 and during 20x5 were P2,000, and (b) on December 1, 20x5, Octopus Retail repossessed the computer (estimated net realizable value, P7,000). Requirements: 1. Determine the realized gross profit on instalment sales for the year 20x4. 2. Determine the gain or loss on repossession recognized in 20x5.