1. A new product introduced by Wilkerson Promotions carries a two-year warranty against defects. The estimated warranty costs related to peso sales are as follows: Year of sale 3 percent Year after sale 5 percent Sales and actual warranty expenditures for the years ended December 31, 2001 and 2002, are as follows: Sales Actual Warranty Expenditures 2001 P 800,000 P20,000 2002 1,000,000 70,000 Required: a. How much is the warranty expense in 2002? b. How much is the estimated liability as of December 31, 2002? Assume the 2001 warranty did not yet expire