Hitzu Co$.$ sold a copier $($that costs $$4,500)$ for $$9,000$ 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 $$135$ for materials taken from the repair parts inventory. These are the only repairs required in Year $2$ for this copier.Hitzu Co$.$ sold a copier $($that costs $$4,500)$ for $$9,000$ cash with a two$-$year parts warranty to a customer on August $16$ of Year $1.$ Hitzu 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 $2.$

$1$ Record the sale of a copier for $$9,000$ cash.

$2$ Record the cost of goods sold of $$4,500.$

mpleted

$3$ Record the estimated warranty expense at $3\%$ of the

air parts

sales.

$4$ On January $5$ of Year $2,$ the copier requires on$-$site

repairs that are completed the same day. The repairs cost

$$135$ for materials taken from the repair parts inventory.

Record the cost of the repair.

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 $$135$ for materials taken from the repair

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

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 $1?$

Estimated warranty liability

Four parts to this one questions