View transaction list View journal entry worksheet No General Journal Debit Credit Date Nov 11 1 Cash 4,900 Sales 4,900 2 Nov 11 980 Cost of goods sold Merchandise inventory 980 3 Nov 30 441 Warranty expense Estimated warranty liability 441 4 Dec 09 196 Estimated warranty liability Merchandise inventory 196 5 Dec 16 Cash 14,700 Sales 14,700 6 Dec 16 2.940 Cost of goods sold Merchandise inventory 2,940 7 Dec 29 392 Estimated warranty liability Merchandise inventory 392 8 Dec 31 1,323 Warranty expense Estimated warranty liability 1,323 9 Jan 05 Cash 9,800 Sales 9,800 10 Jan 05 1,960 Cost of goods sold Merchandise inventory 1,960 11 Jan 17 462 Estimated warranty liability Merchandise inventory 462 12 Jan 31 882 Warranty expense Estimated warranty liability 882 ! 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 $70. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. Nov. 11 Sold 70 razors for $4,900 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $14,700 cash. 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 140 razors for $9,880 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 4 4. What is the balance of the Estimated Warranty Liability account as of December 312 Estimated warranty liability balance 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 $70. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. Nov. 11 Sold 70 razors for $4,900 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $14,700 cash. 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 140 razors for $9,800 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Jan. Problem 9-4A Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance