Ear Co. provides 5-year warranty for its products . Warranty costs, related to sales, are estimated at 2% in the year of sale and 4% in the subsequent years. The warranty obligation has a

balance of P160,000 as of January 1,201. Information for 201 and 202 is as follows: Requirements: a. Provide the journal entries in 201 and 202 to record the actual warranty costs and the provisions for warranty obligation. b. Compute for the balance of the warranty obligation on December 31,202