An entity sells goods that carry two-year warranty

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An entity sells goods that carry two-year warranty. If minor repairs were to be required on all goods sold in 2020, the repair cost would be P100,000. If major repairs were needed on all goods sold, the cost would be P500,000. It is estimated that 80% of the goods sold in 2020 will have no defects, 15% will have minor defects and 5% will have major defects

How much is the provision for warranty repairs for the year 2020?

P40.

P100,000.

P300,000.

P500,000.