On February 1, 2020, Alberta Company sold a machine (that costs $5,500) for $11,000 cash with a two-year parts warranty. Alberta Company expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On March 31, 2021, the machine is repaired under warranty with a cost of $136 for materials taken from the repair parts inventory. Required: 1. How much warranty expense does the company report for this copier in 2020? Warranty expense 2. How much is the estimated warranty liability for this copier as of December 31, 2020? Estimated warranty liability 3. How much is the estimated warranty liability for this copier as of December 31, 2021? Estimated warranty liability 4. Prepare journal entries to record (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31, 2020 and (c) the repairs that occur on March 31, 2021. View transaction list < Prev 12 of 15 Next >