Clark's Chemical Company Received Customer Deposits on Returnable Containers in the Amount

Clark's Chemical Company received customer deposits on returnable containers in the amount of $100,000 during 2009. Twelve percent of the containers were not returned. The deposits are based on the container cost marked up 20%. What is cost of goods sold relative to this forfeiture?

A) $0.
B) $2,000.
C) $10,000.
D) $14,400.($100,000 12%) 120% = $10,000