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Hitzu Co. sold a copier costing $4800 with a two-year warranty to a customer on August 16, 2016, for $6000 cash. Hitzu uses perpetual inventory system. On November 22, 2017, 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 2017 for this.
1) how much warranty expense does the company report in 2016 for this copier?
2) how much is the estimated warranty liability for this copier as of December 31, 2016?
3) How much warranty expense does the company report in 2017 for this copier?
4) how much is the estimated warranty liability for this copier as of December 31, 2017?
5) write a journal entry for November 22nd, 2017, the copier requires on site repairs that are completed the same day. The repairs cost $209 for the materials taken from the repair parts inventory.
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