Required Information [The following information applies to the questions displayed below.) Hitzu Company sold a copier (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 copier requires on-site repairs that are completed the same day. The repairs cost $140 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. 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? 4. 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 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 Req 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 copler as of December 31 of Year 17 3. How much is the estimated warranty liability for this copler 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 Reg 4 > Pro Bo 10 !! Next > Required information Reg 1 to 3 Reg4 Prepare Journal entries to record(a) the copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 13 and (c) the repairs that occur on January 5 of Year 2 Boc View transaction for Journal entry worksheet Print Record the sale of a copler for $13,000 cash. 0 rences Notente debit before credits Debit General Journal Date Credit August 16 Record entry Clear entry View general journal 14 Next > Required information Reg 1 to 3 Rng4 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 (c) the repairs that occur on January 5 of Year 2. View transaction list Journal entry worksheet Reg 1 to 3 Reg 4 Prepare journal entries to record (o) the copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repolrs that occur on January 5 of Year 2. View transaction list Journal entry worksheet 4 Record the estimated warranty expense at 4% of the sales Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general Journal Req 1 to 3 Reg 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 (c) the repairs that occur on January 5 of Year 2. View transaction list Journal entry worksheet
