Reference no: EM132938517

Question - Allan Company, a distributor, bought a machine from the manufacturer in November 2015 for P10,000. On December 30, 2015, the entity sold this machine for P15,000 under the following terms: 2% discount if paid within thirty days, 1% discount if paid after thirty days but within sixty days, or payable in full within ninety days if not paid within the discount periods. However, the customer had the right to return this machine if it was unable to resell the machine before expiration of the ninety-day payment period, in which case the obligation would be cancelled. In the net sales for the year ended December 31, 2015, what amount should be included for the sale of this machine?

A. 15,000

B. 14,700

C. 14,850

D. 0