Hitzu Company sold a copier $($that costs $$4,800)$ for $$6,000$ 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 $$209$ for materials taken from the parts inventory. These are the only repairs required in Year $2$ for this copier.

How much warranty expense does the company report for this copier in Year $1?$

How much is the estimated warranty liability for this copier as of December $31$ of Year $1?$

How much is the estimated warranty liability for this copier as of December $31$ of Year $2?$

Prepare journal entries to record $(a)$ the copier's sale; $(b)$ the adjustment to recognize the warranty expense on December $31$ of Year $1$; and $($c$)$ the repairs that occur on January $5$ of Year $2.$

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record $($a$)$ the copier's sale; $(b)$ the adjustment to recognize the warranty expense on December $31$ of Year $1$; and $(c)$ the repairs that occur on January $5$ of Year $2.$

$1$ Record the sale of a copier for $$6,000$ cash.

$2$ Record the cost of goods sold of $$4,800.$

$3$ Record the estimated warranty expense at $4\%$ of the sales.

Record the cost of repairs that occur on January $5$ of Year $2$