Name: Date: Cells highlighted in green contain a drop-down list; select the appropriate account/response from the list. When the calculations for warranty expense and estimated warranty liability are correct, the cells will change to yellow. Hitzu Company sold a copier (that costs $4,800) for $6,000 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 $209 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Required: 1. How much warranty expense does the company 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? 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 December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2 1. Warranty expense 2. Estimated warranty liability as of December 31 of Year 3. Estimated warranty liability as of December 31 of Year General Journal Debit Credit Date 16-Aug 16-Aug 31-Dec 5-Jan