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4. GRABEANGDALI Co., carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. To promote the sale of its product, GRBEANGDALI Co., uses two promotion techniques - premiums and warranties. Premiums The premium is offered on the recorded and sheet music. Customers receive a coupon for each Php 10 spent on recorded music and sheet music. Customers may exchange 200 coupons and Php 200 for a CD player. GRABEANGDALI Co., pays Php 340 for each CD player and estimates that 60% of the coupons given to customers will be redeemed. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2019 Warranties Musical instruments and sound reproduction equipment are sold with a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. Replacement parts and labor for warranty work totaled Php 1,640,000 during 2019. GRABEANGDALI Co., uses the accrual method to account for the warranty and premium costs for financial reporting purposes. GRABEANGDALI Co., sales for 2019 totaled Php 72,000,000 - Php 54,000,000 from musical instruments and sound reproduction equipment and Php 18,000,000 from recorded music and sheet music. The balances in the accounts related to warranties and premiums on January 1, 2019, were as shown below. Inventory of premium CD players Estimated premium claims outstanding Estimated liability from warranties Php 899,500 448,000 1,360,000 Based on the preceeding information, determine the amounts that will be shown on the 2014 financial statements for the following. a. Estimated liability from warranties b. Premium Expense C. Inventory of premium CD players d. Estimated premium claims outstanding 4. GRABEANGDALI Co., carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. To promote the sale of its product, GRBEANGDALI Co., uses two promotion techniques - premiums and warranties. Premiums The premium is offered on the recorded and sheet music. Customers receive a coupon for each Php 10 spent on recorded music and sheet music. Customers may exchange 200 coupons and Php 200 for a CD player. GRABEANGDALI Co., pays Php 340 for each CD player and estimates that 60% of the coupons given to customers will be redeemed. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2019 Warranties Musical instruments and sound reproduction equipment are sold with a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. Replacement parts and labor for warranty work totaled Php 1,640,000 during 2019. GRABEANGDALI Co., uses the accrual method to account for the warranty and premium costs for financial reporting purposes. GRABEANGDALI Co., sales for 2019 totaled Php 72,000,000 - Php 54,000,000 from musical instruments and sound reproduction equipment and Php 18,000,000 from recorded music and sheet music. The balances in the accounts related to warranties and premiums on January 1, 2019, were as shown below. Inventory of premium CD players Estimated premium claims outstanding Estimated liability from warranties Php 899,500 448,000 1,360,000 Based on the preceeding information, determine the amounts that will be shown on the 2014 financial statements for the following. a. Estimated liability from warranties b. Premium Expense C. Inventory of premium CD players d. Estimated premium claims outstanding