Problem $11-4$A $($AIgo$)$ tst$$mat$$ng warranty expense and IIab$$lIty LU P$4$

$[$The following information applies to the questions displayed below.$]$

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 $$15$ and its retail selling price is $$60.$ The company expects warranty costs to equal $6\%$ of dollar sales. The following transactions occurred.Problem $11-4$A $($Algo$)$ Part $1$

Required:

Prepare journal entries to record above transactions and adjustments.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$....$

$12$

Record the cost of goods sold for $50$ razors.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$November $11,$Cost of goods sold,,$],[,,,]]$

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