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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 $$7,500)$ for $$15,000$ 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 $$105$ for materials taken from the repair parts inventory. These are the only repairs required in Year $2$ for this copier.

Exercise $9-12($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.

Req $1$ to $3$

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 $2?$

Warranty expense

Estimated warranty liability

Estimated warranty liability