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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below. Hizzu Company sold a copier

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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below. Hizzu Company sold a copier (that costs $3,500 ) for $7,000 cash with a two-year parts warranty to a customer on Augumt 16 of Year 1 . Hitzu expects warranty costs to be 3% of dollar sales. It records warranty expense with an adjusting entry or December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same doy. The reparrs cost $121 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 PA 1. How much warranty expense does the company report for this copier in Year 1 ? 2. How much is the astimated warranty liability for this copier as of December 31 of Year 1 ? 3. How much is the estimated warranty liability for this copler as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copler's sale; (b) the adjustment to recognize the wartanty expense on Cechmber 3 Yean 1 , and (c) the repalis 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 liability for this copier as of December 31 of Year ? 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 copier's sale; (b) the adjustment to recognize the warranty expense on Decem ber 3 ol 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. 1. How much warranty expense does the cornpany 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 ? Journal entry worksheet Record the sale of a copier for $7,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the cost of goods sold of $3,500. Note: Enter debits before credits. Journal entry worksheet Record the estimated warranty expense at 3% of the sales. Note: Enter debits before credits. Journal entry worksheet Record the cost of repairs that occur on January 5 of Year 2 . Note: Enter debits before credits

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