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Question - Kairi Company sells computers for P20,000 each and also gives each customer a 3-year warranty that requires the company to perform periodic services and to replace defective parts. During 2019, the company sold 500 computers. Based on experience, the company has estimated the total 3-year warranty costs as P120 for parts and P150 for labor.
In 2019, Kairi Company incurred actual warranty costs relative to 2019 computer sales of P5,400 for parts and P12,600 for labor.
Required - Find the amount reported as warranty expenses in 2019?
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