Hitzu Company sold a copier (that costs $3,500) for $7,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% 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 $149 for materials taken from the parts inventory. These are the only repairs required