Help me answer this thank you 2.Kings Company gives warranties at the timeof sale. Sales of P20,000.000 were made evenlythroughout 2023. Experience indicates that 90%of the products sold require no warranty repairs;7% would require minor repairs costing 10% ofthe sales price. The appropriate discount repairs/replacement costing 85% of the sales price. Theappropriate discount factor for cash flows expectedto occur on June 30, 2023 is 0.935. An appropriaterisk-adjustment factor to reflect the uncertainties inthe cash flow estimates is an increment of 6%. Thewarranty provision for 2023 is?

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2.Kings Company gives warranties at the time of sale. Sales of P20,000.000 were made evenly

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Help me answer this thank you

2.Kings Company gives warranties at the time
of sale. Sales of P20,000.000 were made evenly
throughout 2023. Experience indicates that 90%
of the products sold require no warranty repairs;
7% would require minor repairs costing 10% of
the sales price. The appropriate discount repairs/
replacement costing 85% of the sales price. The
appropriate discount factor for cash flows expected
to occur on June 30, 2023 is 0.935. An appropriate
risk-adjustment factor to reflect the uncertainties in
the cash flow estimates is an increment of 6%. The
warranty provision for 2023 is?

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