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

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Hitzu Company sold a copier $($that costs $$5,500)$ for $$11,000$ cash with a two$-$year parts warranty to a customer on August $16$ of Year $1.$ Hitzu expects warranty costs to be $5\%$ 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 $$137$ 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 recoginize the warranty expense on December $31$ of Year $1$; and $(c)$ the repairs that occur on January $5$ of Year $2.$

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