$[$The following information applies to the questions displayed below.$]$

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 $6\%$ 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 please help

cost $$126$ for materials taken from the 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 $1?$

How much is the estimated warranty liability for this copier as of December $31$ of Year $2?$

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 $2.$

Complete this question by entering your answers in the tabs below.

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 $2.$

Journal entry worksheet

Record the sale of a copier for $$7,000$ cash.