Recovery of bad debt written off by a taxpayer: No.1: P20,000 from accounts written off in a year which had a net income of P200,000 before write-off. (Write-off of the year was P20,000) No.2: P5,000...

Recovery of bad debt written off by a taxpayer:

No.1: P20,000 from accounts written off in a year which had a net income of

P200,000 before write-off. (Write-off of the year was P20,000)

No.2: P5,000 from accounts written off in a year which had a net loss before

write-off of P36,000. (Write-off for the year was P5,000)

No.3: P10,000 from accounts written off in a year which had a net income of

P8,000 before write-off. (Write-off for the year was P8,000)

The income from the bad debt recovery is:

a. P35,000

b. P20,000

c. P26,000

d. P30,000