TheHEP HEP CO, sells direct to retail customers and also to wholesalers. Accounts receivable and an allowance for had debts are maintained separately for each division. On January 1, 2019 the balance of the retail accounts receivable was Prog,ooo while the bad debts with respect to retail customers was a credit of P7,600. The following summary pertains only to retail sales since 2012: Credit Sales Bad Debts Bad Debts. Written off Recoveries 2016 P1,no,ooo P26,000 P2,150 2017 1,225,000 29,500 3,750 2018 1,465,000 30,000 3.600 2019 1,500,000 31,000 4-200 Bad debts are provided for as a percentage GI credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. The formula is bad debts written off less recoveries expressed as a percentage of the credit sales for the same period. Cash receipts in 2019 from credit sales to retail customers was P1,380,200