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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below) Hitzu Co. 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 cost $97 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-12 (Algo) Warranty expense and liability computations and entries LO P4 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 12 3. How much is the estimated warranty Nability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copler's sale by the adjustment to recognize the warranty expense on December 31 of Year 1: and the repairs that occur on January 5 of Year 2 Req 1 to 3 Req 4 1. How much warranty expense does the company report for this copier in Year 17 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? 1. Warranty expense 2. Estimated warranty liability 3. Estimated warranty liability Req 4 > Journal entry worksheet Journal entry worksheet Record the cost of goods sold of $3,500. Note: Enter debits before credits. Date General Journal Debit Credit Aug 16 Record entry Clear entry View general journal Required information Journal entry worksheet 1 2. 3 4 > Book Record the estimated warranty expense at 6% of the sales, erences Note: Enter debits before credits Date Dec 31 General Journal Debit Credit Record entry Clear entry View General journal Journal entry worksheet

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