Question: solve and show your solution and explanation Problem 19-5 (IFRS) Davao Company prepares quarterly interim financial reports The entity sells electrical goods and normally 5%,
solve and show your solution and explanation
Problem 19-5 (IFRS) Davao Company prepares quarterly interim financial reports The entity sells electrical goods and normally 5%, or customers claim on their warranty The warranty expense in the first quarter was calculated 5% of sales to date which amounted to P 10,000,000. at However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P15,000,000. What amount of warranty expense should be charged in the interim income statement for the second quarter? a. 2,000,000 b. 1,250,000 c. 1,500,000 d. 750,000
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