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18 Required information Part 1 of5 The foowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 No. 11 sold 70 razors for 4,900 cash Print 30 Recognized warranty expense related to Novenber sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan . S sold 140 razor for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 1a. Prepare journal entries to record above transactions and ad ustments for 2017 1b. Prepare journal entries to record above transactions and adjustments for 2018. Complete this quesion by entering your answers in the tabs below RequiredRequired 1A 1B Prepare journal entries to record above transactions and adjustments for 2017 View transaction list Journal entry worksheet 1 23 45 6 78 Record the sales revenue of 70 razors for $4,900 cash. Note: Enter debits before credits. Now 11 Record entry View general journal Clear entry 18 Required information Part 1 of5 The foowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 Nov. 11 Sold 70 razors for $4,900 cash Print 30 Recognized warranty expense related to Novenber sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash ReferenCe 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan. 5 Sold 140 razors for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 1a. Prepare journal entries to record above transactions and ad ustments for 2017 1b. Prepare journal entries to record above transactions and adjustments for 2018. Complete this quesion by entering your answers in the tabs below RequiredRequired 1A 1B Prepare journal entries to record above transactions and adjustments for 2018 View transaction list Journal entry worksheet Record the sales revenue of 140 razors for $9,800 cash. Note: Enter debits before credits. Jan 05 Record entry View general journal Clear entry 19 Required information Part 2 of 5 The folowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 Nov. 11 Sold 70 razors for $4,900 cash Print 30 Recognized warranty expense related to Novenber sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash ReferenCe 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan. 5 Sold 140 razors for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 2. How much warranty expense is reported for November 2017 and for December 2017? Warranty expense for November 2017 Warranty expense for December 2017 20 Required information Part 3 of 5 The foowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 No. 11 sold 70 razors for 4,900 cash Print 30 Recognized warranty expense related to Novenber sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash ReferenCE 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan. 5 Sold 140 razors for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 3. How much warranty expense is reported for January 2018? 21 Required information Part 4 of5( The foowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 No. 11 sold 70 razors for 4,900 cash Print 30 Recognized warranty expense related to Sovember sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash Reference 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan. 5 Sold 140 razors for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 4. What is the balance of the Estimated Warranty Llability account as of December 31, 2017? Required information Part 5 of 5 The foowing information appies to the questions displayed below. On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual nventory 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 companys cost per new razor is $16 and its retail selling price is $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 10 points eBook 2017 No. 11 sold 70 razors for 4,900 cash Print 30 Recognized warranty expense related to Novenber sales with an adjusting entry Dec. 9 Replaced 14 razors that were returned under the varranty 16 Sold 210 razora for $14,700 cash ReferenCe 29 Replaced 28 razors that were returned under the varranty 31 Recognized warranty expense related to Decenber sales with an adjusting entry 2018 Jan. 5 Sold 140 razors for $9,800 cash 17 Replaced 33 razors that were returned under the varranty 31 Recognized warranty expense related to January sales with an adjusting entry 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2018

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