Required information Problem 9-4A Estimating warranty expense and liability LO P4 {The following information applies to the questions displayed below} On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 'l'l of dollar sales. The following transactions occurred. Nov. 11 Sold 30 razors for $T,Z cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160- razors for $14,400 cash. 17 Replaced 3? razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 94A Part 1 1. Prepare journal entries to record above transactions and adjustments. View trarl sactlon list Journal entry worksheet Record the replacement of 32 razors that were returned under the warranty. Required information Problem 9-41! Estimating warranty expense and liability LO P4 {The foiiowing information applies to the questions displayed beiovz} On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 'i'i of dollar sales. The following transactions occurred. Nov. 11 Sold 30 razors for $7,200 cash. 33 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 25 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160 razors for $14,400 cash. 17 Replaced 3? razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 94A Part 1 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the sales revenue of BD razors for $7,200 cash. Required information Problem 94A Estimating warranty expense and liability LO P4 l{Tile following infomation applies to the questions displayed beiow} On October 29, Lobe Co. 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 compan y's cost per new razor is $14 and its retail selling price is $90. The companyr expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 30 razors for $?,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160 razors for $14,400 cash. 17 Replaced 3? razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 9-4A Part 1 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the cost of goods sold for ED razors. Required information Problem 94A Estimating warranty expense and liability LO P4 l{Tile following infomation applies to the questions displayed beiow} On October 29, Lobe Co. 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 compan y's cost per new razor is $14 and its retail selling price is $90. The companyr expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 30 razors for $?,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160 razors for $14,400 cash. 17 Replaced 3? razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 9-4A Part 1 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the estimated warranty expense at 7% of November sales. Required information Problem 9-4A Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 80 razors for $7,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21, 600 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 160 razors for $14, 400 cash. 17 Replaced 37 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. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the replacement of 16 razors that were returned under the warranty. Note: Enter debits before credits. Required information Problem 94A Estimating warranty expense and liability LO P4 {The following lnfonnaflon applies to the questions displayed below} On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-dayI warranty. When a razor is returnedI the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $90. The companyr expects warranty costs to equal NE of dollar sales. The following transactions occurred. Nov. 11 Sold 30 razors for $1,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160 razors for $14,400 cash. 17 Replaced 3T razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 94A Part 1 1. Prepare journal entries to record above transactions and adjustments. View Iran section list Journal entry worksheet Record the adjusting entry for warranty expense for the month of January. Required information Problem 94A Estimating warranty expense and liability LO P4 {The following infomation applies to the questions displayed below} On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal T96 of dollar sales. The following transactions occurred. Nov. 11 Sold at] razors for $7,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 3] Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 160 razors for $141,400 cash. 1? Replaced 3? razors that were returned under the warranty. 3] Recognized warranty expense related to January sales with an adjusting entry. Problem 94A Part 1 1. Prepare journal entries to record above transactions and adjustments. View trarl sac'tlon list Journal entry worksheet o-----ooooooo Record the cost of goods sold for 240 razors. Required information Problem 9-4A Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 80 razors for $7,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21, 600 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 160 razors for $14, 400 cash. 17 Replaced 37 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. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the sales revenue of 240 razors for $21,600 cash. Note: Enter debits before credits.Required information Problem 9-4A Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 80 razors for $7,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21, 600 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 160 razors for $14, 400 cash. 17 Replaced 37 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. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet