Hitzu Company sold a copler (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 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copler requires on-slte repalrs that are completed the same day. The repairs cost $102 for materlals taken from the parts Inventory. These are the only repalrs requlred 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 llability for this copler as of December 31 of Year 2? 4. Prepare journal entrles to record (d) the copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Yea 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 copier in Year 1 ? 2. How much is the estimated warranty liability for this copier 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 ? 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 $15,000 cash. 2 Record the cost of goods sold of $7,500. 3 Record the estimated warranty expense at 6% of the sales. 4 Record the cost of repairs that occur on January 5 of Year 2. Note: = journal entry has been entered