Exercise 11-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% 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 $112 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier 1. How much warranty expense does the company report for this copier in Year 1 Westanty expensa 2. How much is the estimated warranty liability for this copier as of December 31 of Year 12 Estimated waranty liability