Required information [The following information applies to the questions displayed below.] Hitzu Company sold a copler (that costs $3,500 ) for $7,000 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 $97 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copler. 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 copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year i; and (c) the repairs 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 copler in Year 1 ? 2. How much is the estimated warranty liabiaty for this copler as of December 31 of Year 17 3. How much is the estimated warranty liablity for this copier as of December 31 of Year 27 Required information [The following information applies to the questions displayed below] Hitzu Company sold a copier (that costs $3,500 ) for $7,000 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 doy. The repairs cost $97 for materials taken from the parts inventory. These are the only repoirs 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 joumal entries to record (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31 of Yeat 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 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 . Journal entry worksheet Record the sale of a copler for $7,000 cash. Notbi Enter dehits bedone credity