QUESTION 2 [25 MARKS] Hi-Tech company sells equipment with a refund policy, if the customer is not satisfied, that equipment may be returned for a full refund. Sales for the year come to P1,050,000. Required: For each of the following scenarios, explain whether a pure liability, provision or contingent liability should be reported or disclosed at year-end, or whether the refund policy should be ignored. a. At year end, it is reliably estimated, based on past experience that only 5% of sales will still be returned for a full refund. (13 marks) b. At year end, it is not possible to estimate the possible returns and related refunds. (12 marks)