XIII. During 2017, Nicole Company introduced a new product carrying a twoyear warranty against defects. The warranty costs related to peso sales are 3% within 12 months following sale and 5% in the second 1 following sale. Sales and actual warranty expenditures for the years ended December 31, 2016 and 20 follows: Sales Actual expendibires 2016 40,000,000 1,000,000 201? 50,000,000 5,000,000 What is the 2016 warranty expense? What is the December 31, 2016 warranty liability? What is the 201? warranty expense? What is the December 31, 201? warranty liability? PP-'F-'l' Joph Company, a grocery retailer, operates a customer loyalty program. The entity grants program roe points when they spend a specified amount on groceries. Program members can redeem the points f groceries. The points have no expiry date. During 2016, the entity granted 10,000 points with a "stand a] fair value of P100. Management expects that 6,000 of these points will he redeemed. The 2016 sales P1000000 during the year based on its stand-alone selling price. [In December 31, 2016, 4,000 points redeemed in exchange for groceries. In 201?, the management revised its expectations and now expects it, to be redeemed altogether. During 2012, the entity redeemed 4,100 points. 1. What is the total revenue recognized year ended December 31, 2016? 2. What is the revenue earned from loyalty points for the year ended December 31, 2012? Dana Company sells gift certicates redeemable only when merchandise is purchased The certificate expiration date of two years after issuance date. Upon redemption. or expiration, Dana recognizes the revenue as realized. Data for 201? are as follows: Unearned revenue, 1.0.1201? 2,500,000 Gift certificates sold 6,000,000 Gift certificates redeemed 6,500,000 Estimated gift certicates not to be redeemed 500,000 Cost of goods sold 60% At December 31, 201?, what should Dana report as unearned revenue for gift certicates? Anessa Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are non-refundable. Data for the year are: Customer advances 6,600,000 Advances received with orders in 201? 0,000,000 Advances applied to orders shipped 0,200,000 Advances applicable to orders cancelled in 201? 2,600,000 The December 31, 201?r statement of nancial position should report current liability for advances at - End ofCurrentLinbiiities