During 2019, Trixia Company introduced a new product carrying a two-year warranty against defects. The estimated warranty cost related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. The entity reported sales of P5,000,000 for 2019 and P6,000,000 for 2020. The actual expenditures incurred and paid amounted to P150,000 for 2019 and P550,000 for 2020. 25) What is the warranty expense for 2020? A. 1,100,000 B. 600,000 C. 500,000 D. 550,000 26) What amount should be reported as estimated warranty liability on December 31, 2020? A. 360,000 B. 400,000 C. 240,000 D. 50,000