ABC Company sells a television set with a 2-year warranty against defects. ABC estimates warranty costs at 2% of the peso sales within 12 months following the sale and at 4% in the second 12 months following the sale. Sales for the year 2018 and 2019 are P 5,000,000 and P 7,500,000, respectively.


Assuming sales and repair occur evenly throughout the period, how much would be the predicted warranty expense covering 2018 and 2019 sales still under warranty at December 31,2019?