Required information [The following information applies to the questions displayed below.] Hitzu Company sold a...
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Required information [The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $6,500 ) for $13,000 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 $123 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
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