15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows:
15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows: amount should COCONUT report as its estimated liability as of December 31, 2021? a. ₱ 740,000 b. ₱ 40,000 c. ₱ 240,000 d. ₱ 540,000 : Year of sale .
3 percent
Year after sale
5 percent
Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021,
are as follows:
Actual Warranty
Sales
Expenditures
P 200,000
700,000
2020
P 8,000,000
2021
10,000,000

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