Problem 4: Contingent Liability On the situation below determine whether the liability is provision or not. Write Provision if it be recognized a liability and their corresponding amount. If not be recognized as a liability, write not provision. (SHOW SLUTION IF NEEDED)

1. No customer accounts have been shown to be uncollectible as yet but E Company estimated that 3% of credit sales will eventually prove uncollectible. Credit sales amounted P30,000,000 for 2019. _______________________

2. E Company offers a two-year warranty against manufacturers defect for all its products. Industry experience indicates that warranty costs will approximately 2% of credit sales. Actual warranty paid totalled P350,000. ___________________________

3. E Company is involved in a lawsuit resulting from a dispute with a customer. On January 2020, judgment was rendered against E Company in the amount of P1,500,000 plus interest of P300,000. E Company plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the entity._______________________