A. During 2019, Luciana Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 3% within 12 months following sale and 5% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2018 and 2019 are as follows:

SALES ACTUAL

2018 Php40,000,000 Php1,000,000

2019 50,000,000 5,000,000

What is the December 31, 2018 warranty liability?

B. Jordan Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During 2016, the entity granted 10,000 points with a "stand alone price" fair value of P100. Management expects that 8,000 of these points will be redeemed. The 2016 sales amounted to P7,000,000 during the year based on its stand-alone selling price. On December 31, 2016, 4,000 points have been redeemed in exchange for groceries. In 2017, the management revised its expectations and now expects 9,000 points to be redeemed altogether. During 2017, the entity redeemed 4,100 points.

What is the revenue earned from loyalty points for the year ended December 31, 2017?

C. LoyolaCompany issued a P5,000,000 notes payable on April 1, 2018 bearing an interest rate of 12% that is compounded annually on March 31, 2018. If the principal and the interest is payable on maturity date, what is the accrued interest to be reported on Loyola's December 31, 2019 statement of financial position?