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Required information

Use the following information for the Exercises below. $($Algo$)$

$[$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 $6\%$ 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 $$129$ for materials taken from the parts inventory. These are the only repairs required in Year $2$ for this copier.

Exercise $11-12($Algo$)$ Warranty expense and liability computations and entries LO P$4$

How much warranty expense does the company report for this copier in Year $1?$

How much is the estimated warranty liability for this copier as of December $31$ of Year $1?$

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 $2.$

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 warranty expense on December $31$ of Year $1$ ; and $(c)$ the repairs that occur on January $5$ of Year $2.$

$\backslash$table$[[1.$ Record the sale of a copier for $$7,000$ cash.$],[$Record the cost of goods sold of $$3,500.],[$sales$.],[$Record the cost of repairs that occur on January $5$ of year$],[2.],[$Note : $=$ journal entry has been entered$]]$