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Question - ABC Corp which began operations in 2016, accounts for revenues using the instalment method. ABC's sales and collections for the year were P60,000 and P35,000 respectively. Uncollectibe accounts receivables of P5,000 were written off during 2016. ABC's gross profit rate is 30%. In its Decemver 31, 2016, balance sheet, what amount should ABC report as deferred revenue?
A. 10,500
B. 9,000
C. 7,500
D. 6,000
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