Hitzu Co. sold a copier (that costs $7,500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $107 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1? Warranty expense $ 600 16 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? Estimated warranty liability $ 600) 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? Estimated waranty lativty $ 493