Ch 09 Homework Help Save &B 13 Cha Required information Problem 9-4A Warranty expense and liability estimation LO P4 The following information applies to the questions displayed below) Part 1 of 5 029 poimts On October 2 method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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 $16 and its retail selling price is $60 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 9% of dollar sales. The following transactions and events occurred 9, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory eBook Print 2016 Nov. 11 5old 79 razors for $4,200 casth. Dec. 9 Replaced 14 razors that were returned under the warranty se Recognized warranty expense related to November sales with an adjusting entry. 16 Sold 210 razors for $12,600 cash 29 Replaced 28 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry 2017 Jan. 5 Sold 140 razors for $8,400 cash 17 Replaced 33 razors that were returned under the warranty 31 Recognized warranty expense related to January sales with an adjusting entry Problem 9-4A Part 1 1.1 Prepare journal entries to record above transactions and adjustments for 2016 Record the estimated warranty expense at 9% of November sales. Note: Enter debits before credits. Date General Journal Debit Credit Nov 30 Warranty expense 336 Estimated warranty liability 336