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estimating warranty expense and liability

brk Assignment Saved Help Save & Exit Subm. Check my work 1 Required Information Problem 9-4A (Static) Estimating warranty expense and liability LO P4 [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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7.875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 rarors that were returned under the warranty. December 16 Sold 220 razors for $16.500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11,250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9.4A (Static) Part 1 Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction et Required information Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the sales revenue of 105 razors for $7,875 cash. Note: Enter debits before credits Date General Journal Debit Credit November 11 Cash 7,875 Sales 7.875 OD Saved Required Information Required: 1. Prepare Journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet os Record the cost of goods sold for 105 razors. Note: Enter debits before credits. Date Dobit General Journal Cost of goods sold Credit November 11 Required: 1. Prepare Journal entries to record above transactions and adjustments, 5 View transaction list Journal entry worksheet t hces Record the estimated warranty expense at 8% of November sales. Note: Enter debits before credits Date General Journal Debit Credit November 30 ces Record the replacement of 15 razors that were returned under the warranty Note: Enter debits before credits Date December 09 General Journal Debit Credit Record the sales revenue of 220 razors for $16,500 cash. Note: Enter debits before credits Date General Journal Dobit Credit December 16 View transaction list Journal entry worksheet Record the cost of goods sold for 220 razors. Note: Enter debits before credits Date General Journal Dobit Credit December 16 CO 1 0 Required Information Required: 1. Prepare Journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet 2 3 5 6 8 12 > Record the replacement of 30 razors that were returned under the warranty. Note: Enter debits before credits Dato General Journal Dobit Credit December 29 Required: 1. Prepare Journal entries to record above transactions and adjustments, View transaction list Journal entry worksheet Record the estimated warranty expense at 8% of December sales. Note: Enter debits before credits Dato General Journal Dobit Credit December 31 Required information View transaction list Journal entry worksheet WE MCM 0 Required information View transaction list Journal entry worksheet

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