Question: On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty

On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory 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 $15 and its retail selling price is $60 in both 2012 and 2013. The manufacturer has advised the company to expect warranty costs to equal 5% of dollar sales. The following transactions and events occurred. On October 29, 2012, Lobo Co. began operations by purchasing razors for

resale. Lobo uses the perpetual inventory method. The razors have a 90-day

warranty that requires the company to replace any nonworking razor. When a

BASED ON THE NFORMATION ABOVE, HOW CAN I FINISH THE REST!!!!!!!!

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 $60 in both 2012

and 2013. The manufacturer has advised the company to expect warranty costs

PLEASE FINISH THE LEFT OVER BASED ON THE INFORMATION I'VE ALREADY PROVIDED! thanks!

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