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 $$7,500)$ for $$15,000$ cash with a two$-$year parts warranty to a

customer on August $16$ of Year $1.$ Hitzu expects warranty costs to be $3\%$ 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 $$119$ for materials taken from the 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.

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

Required information

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

$[$The following information applies to the questions displayed below.$]$

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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 $3\%$ 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 $$119$ for materials taken from the parts inventory. These

are the only repairs required in Year $2$ for this copier.

Exercise $9-13($Algo$)$ Financial statement impact of warranty transactions LO P$4$

Analyze each of the following transactions: $($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 $2.$ Show each transaction's effect on the

accounting equation$-$specifically, identify the accounts and amounts $($including $+$ or $-)$ for each.

Note: Enter all amounts as positive value.