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Question - Domondon Enterprise prepares quarterly interim financial reports in accordance with PAS 34. Domondon sells electrical goods, and normally 8% of customers claim on their warranty. The provision in the first quarter was calculated as 8% of sales to date, which was P12,000,000. However, in the second quarter, a design fault was found and warranty claims were expected to be 15% for the whole of the year. Sales in the second quarter were P18,000,000. What would be the provision charged in the second quarter's interim financial statements?
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