Bella Company sells washing machines that carry a three-year warranty against manufacturer's defects. Based on the entity's experience, warranty costs are estimated at P300 per machine. During the current year, the entity sold 2,400 washing machines and paid warranty costs of P170,000. What amount should be reported as warranty liability at year end? A. P170,000 B. P720,000 C. P550,000 D. P0