On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a...

  

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On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $6,400 cash. November 30 December 9 December 16 December 29 Recognized warranty expense related to November sales with an adjusting entry. Replaced 16 razors that were returned under the warranty. Sold 240 razors for $19,200 cash. Replaced 32 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 160 razors for $12,800 cash. January 17 Replaced 37 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. uired: repare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the sales revenue of 80 razors for $6,400 cash. Note: Enter debits before credits. Date November 11 General Journal Debit Credit View general journal Record entry Clear entry < Prev 1 - Sm 2 3 5 of 5 Next > On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $6,400 cash. November 30 December 9 December 16 December 29 Recognized warranty expense related to November sales with an adjusting entry. Replaced 16 razors that were returned under the warranty. Sold 240 razors for $19,200 cash. Replaced 32 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 160 razors for $12,800 cash. January 17 Replaced 37 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. uired: repare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the sales revenue of 80 razors for $6,400 cash. Note: Enter debits before credits. Date November 11 General Journal Debit Credit View general journal Record entry Clear entry < Prev 1 - Sm 2 3 5 of 5 Next >

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Following are the journal entries to record the transactions Dat... View the full answer