32 What is the warranty expense that will appe 20207 xercise 10-16 Warranty expense and liability LO4 CHECK FIGURE 4. Ending 2021 balance $310 with a two-year parts and labour warranty. Based on prior experience, Norwood expects eventually wow On October 6, 2020, Norwood Co., an office equipment supplier, sold a copier for cash of $21,000 (cost $ warranty costs equal to 6% of the selling price. The fiscal year coincides with the calendar year. On Janua 2021, the customer returned the copier for repairs that were completed the same day. The cost of the s consisted of $400 for the materials taken from the parts inventory and $550 of labour that was fully paid cash. These were the only repairs required in 2021 for this copier. Required 2. How much is the warranty liability for this copier as of December 31, 2020? 1. How much warranty expense should the company report in 2020 for this copier? 3. How much warranty expense should the company report in 2021 for this copier? 4. How much is the warranty liability for this copier as of December 31, 2021? Asuming th justing ente s. Calculate Exercise CHECK B Superis 5. Show the journal entries that would be made to record (a) the sale (assume a perpetual inventory syste (b) the adjustment on December 31, 2020, to record the warranty expense; and (c) the repairs that occu in January 2021. Ignore sales taxes. analy a. D