“Hitzu Co. sold a copier costing $4,800 with a two-year parts warranty to a customer on August 16,
2013, for $6,000 cash. Hitzu uses the perpetual inventory system. On November
22, 2014, the copier requires on-site repairs that are completed the same day.
The repairs cost $209 for materials taken from the Repair Parts Inventory.
These are the only repairs required in 2014 for this copier. Based on
experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales.
It records warranty expense with an adjusting entry at the end of each year.

1.
How much warranty expense does the company report in 2013
for this copier?

2.
How much is the estimated warranty liability for this copier
as of December 31, 2013?

3.
How much warranty expense does the company report in 2014
for this copier?

4.

How much is the estimated warranty liability for this copier
as of December 31, 2014?

4.
How much is the estimated warranty liability for this copier
as of December 31, 2014?

(a)
Prepare journal entry to record the copiers sale.

5(b)
Prepare journal entry to record the adjustment on December
31, 2013, to recognize the warranty expense.

5(c)
Prepare journal entry to record the repairs that occur in
November 2014.Hitzu Co. sold a copier costing $4,800 with a two-year parts
warranty to a customer on August 16,
2013, for $6,000 cash. Hitzu uses the perpetual inventory system. On November
22, 2014, the copier requires on-site repairs that are completed the same day.
The repairs cost $209 for materials taken from the Repair Parts Inventory.
These are the only repairs required in 2014 for this copier. Based on
experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales.
It records warranty expense with an adjusting entry at the end of each year.1.How much warranty expense does the company report in 2013
for this copier?2.How much is the estimated warranty liability for this copier
as of December 31, 2013?3.How much warranty expense does the company report in 2014
for this copier?4.How much is the estimated warranty liability for this copier
as of December 31, 2014?4.How much is the estimated warranty liability for this copier
as of December 31, 2014?(a)Prepare journal entry to record the copiers sale.5(b)Prepare journal entry to record the adjustment on December
31, 2013, to recognize the warranty expense.5(c)Prepare journal entry to record the repairs that occur in
November 2014.”