Apple sells a laptop (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on September 20 of Year 1. Apple expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 6 of Year 2, the laptop requires on-site repairs that are completed on the same day. The repair costs $90 for materials taken from the Parts Inventory. These are the only repairs required in Year 2 for this laptop