31, 5. Warranties. In the calendar year 2020, Golden Enterprises sold 4,000 units of its product for P10,000 each. The selling price included a one-year warranty on parts. It is expected that 3% of the units would be defective and that repair costs would average P1,500 per unit. In 2020, warranty contracts were honoured on 80 units of product for a total cost of P120,000. The Provision for Warranty account had a balance of P120,000 at January 1, 2020. What amount should Golden accrue on December 31, 2020 for estimated warranty costs?