On April 1, 2013, GE Company sold for P 7.000 refrigerator which had a cost of P 4,550. A down payment of P 750 was made with the provision that additional payments of P625 be made monthly thereafter. Interest was to be charged at a monthly rate of 2 percent on the unpaid balance of the principal. After completing four months installment the customer defaulted and the refrigerator was repossessed. At this time, the fair value of the refrigerator(used) was estimated to be P1,875. The gain (loss) on the repossession and the realized gross profit to e recognized in 2013 are: Gain (Loss) on Repossession Realized Gross Profit a. (P847.98) P1,1375.50 b. (P847.98) P983.78 C. (P562.50) P875.00 d. P562.5 P983.75