38. During the current year, Responsibility Company inserted in each package sold a coupon offering P300 off the purchase price of a particular brand of product when the coupon is presented to retailers. The retailers are reimbursed for the face amount of coupons plus 10% for handling. Previous experience indicates that 30% of coupons will be redeemed. During the current year, Responsibility issued coupons with face amount of P10,000,000 and total payments to retailers amounted to P2,000,000. What is the amount of coupon liability at the end of the year? 39. Warranty expense for 2020 * For items 39 and 40 Kindness Music Emporium carries a wide variety of music promotion techniques - warranties and premiums - to attract customers. Musical instrument and sound equipment are sold in a one-year warranty for replacement pf parts and labor. The estimated warranty cost, based on past experience is 2% of sales. Kindness' total sales for 2020 were P43,200,000 from musical instrument. Replacement parts and labor for warranty work totaled P1,312,000 during 2020. The accrual method is used by Kindness to account for the warranty cost for financial reporting purposes. The balance of Estimated warranty liability on January 1, 2020 is P1,088,000