Reference no: EM133178481

Questions -

Q1. ABC Co.'s salaried employees are paid twice a month. Information relating to salaries for the calendar year 2021 is as follows:

Accrued salaries payable, Jan. 1 - P150,000

Salaries expense during the year - P2,450,000

Salaries paid during the year - P2,330,000

On December 31, 2021, what amount should ABC Co. report for accrued salaries payable?

Q2. Adorable Company owns a car dealership that it uses for servicing a car under warranty. The company's past experience with warranty claims is as follows: 50% of the cars sold in a year have zero defect, 30% of the cars sold in a year have normal defect, and 20% of the cars sold in a year have significant defect. The cost of rectifying the normal defect is P10,000 while the significant defect is P30,000. The company sold 500 cars in 2021. How much is the amount of provision for warranty in 2021?