4. At the beginning of the year 2022, PRISM Company had an estimated warranty liability of...

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4. At the beginning of the year 2022, PRISM Company had an estimated warranty liability of P900,000. The Company estimates that 5% of its products sold will be defective and will require rectification costs of P200 per unit. However, starting on January 1, 2023, the Company increased its surveillance to its quality control department, consequently revising the estimated defective units to just 2% of the number of units sold. Pertinent information for the years 2022 and 2023 is given as follows: 2022 Actual warranty costs P2,200,000 Number of units sold 320,000 2023 P1,250,000 360,000 stguese 210 Required: Determine the amount of estimated warranty expense for 2023 and estimated warranty liability as of December 31, 2023. 4. At the beginning of the year 2022, PRISM Company had an estimated warranty liability of P900,000. The Company estimates that 5% of its products sold will be defective and will require rectification costs of P200 per unit. However, starting on January 1, 2023, the Company increased its surveillance to its quality control department, consequently revising the estimated defective units to just 2% of the number of units sold. Pertinent information for the years 2022 and 2023 is given as follows: 2022 Actual warranty costs P2,200,000 Number of units sold 320,000 2023 P1,250,000 360,000 stguese 210 Required: Determine the amount of estimated warranty expense for 2023 and estimated warranty liability as of December 31, 2023.