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Hitzu Company 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.

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Hitzu Company 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 $102 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-12 (Algo) Warranty expense and liability computations and entries LO P4 1. How much warranty expense does the company report for this copler in Year 12 2. How much is the estimated warranty liability for this copler as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copler as of December 31 of Year 2? 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 (a) the repairs that occur on January 5 of Year 2. Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 1. How much warranty expense does the company report for this copler in Year 17 2. How much is the estimated warranty liability for this copler as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 1. Warranty expense 2. Estimated warranty liability as of December 31 of Year 1 3. Estimated warranty liability as of December 31 of Year 2 Journal entry worksheet Record the sale of a copier for $15,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date August 16 Record entry Clear entry View general journal Journal entry worksheet Record the cost of repairs that occur on January 5 of Year 2. Note: Enter debits before credits. Date General Journal Debit Credit January 05 Record entry Clear entry View general journal

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