The following data were taken from the records of Sweet Serendipity Co. before the accounts are closed for the year ended December 31, 20x7. The company uses the installment method of recognizing revenue and it sells goods exclusively on installment basis.

	For the year ended:
	12/31/20x5	12/31/20x6	12/31/20x7
Installment Sales	?	P500,000	P600,000
Cost of Goods Sold	300000	?	?
	Balances as of:
	12/31/20x5	12/31/20x6	12/31/20x7
Installment AR, 20x5	P350,000	P125,000	P35,000
Installment AR, 20x6		P307,500	P140,000
Installment AR, 20x7			P490,000
DGP, 20x5	P122,500	P43,750	P43,750
DGP, 20x6		P123,000	P120,000
DGP, 20x7			P210,000

On January 20x7, a customer defaulted and Sweet Serendipity repossessed the merchandise. The merchandise was assessed to have a cost of P4,200 after costs of reconditioning amounting to P800. The repossessed merchandise was purchased by the customer in 20x6 and the said customer still owed the company a certain amount at the date of repossession.

How much was the realized gross profit and loss on repossession in 20x7?

Select one:

a.

P137,000 ; P3,300

b.

P137,000 ; P4,100

c.

P134,000 ; P1,100

d.

P134,000 ; P300