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Hitzu Company sold a copler (that costs $6,500 ) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year

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Hitzu Company sold a copler (that costs $6,500 ) for $13,000 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 copler requires on-site repairs that are completed the same day. The repalrs cost $130 for materials taken from the repair parts inventory. These are the only repalrs required in Year 2 for this copler. 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 1 ? 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 ? 4. Rrepare joumal entries to record (d) the copler'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 wartanty expense on December 31 of Year 1 is and (c) the repairs that occur on January 5 of Year 2 . Journal entry worksheet December 31. On January 5 of Year 2 , the copler requires on-site repairs that are completed the same day. The repairs cost $130 for materlals taken from the repair parts inventory. These are the only repalrs required in Year 2 for this copler. Exercise 912 (Algo) Warranty expense and liability computations and entries LO P4 1. How much warranty expense does the company report for this copler in Year 1 ? 2. How much is the estimated warranty llability 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 entrles to record (a) the copler's sale; (b) the adjustment to recognize the warranty expense on December 3 Year 1; and (c) the repalrs that occur on January 5 of Year 2 Complete this question by entering your answers in the tabs below. 1. How much warranty expense does the company report for this coplen in Year 17 2. How much is the estimated warranty liability for this copler as of December 31 of Year 17 3. How much is the estimated warranty lisbility for thils copier as of December 31 of year 2

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