Hitzu Co. sold a copler (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% 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 $123 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copler. 1. How much warranty expense does the company report for this copier in Year 1? Warranty expense 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? Estimated warranty liability 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? Estimated warranty liability 4. Prepare journal entries to record (a) the copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and the repairs that occur on January 5 of Year 2. View transaction list View journal entry worksheet Debit Credit No General Journal Date Aug 16 Cash Sales Aug 16 Cost of goods sold Merchandise inventory Par 31 I Warranty anne View transaction list View journal entry worksheet No General Journal Debit Credit Date Aug 16 Cash Sales 1 2 Aug 16 Cost of goods sold Merchandise inventory 3 Dec 31 Warranty expense Estimated warranty liability Jan 05 Estimated warranty liability Repair parts inventory