tabs:

2. Record the cost of goods sold for 60 razors.

3. Record the estimated warranty expense at 7% of November sales.

4. Record the replacement of 12 razors that were returned under the warranty.

5. Record the sales revenue of 180 razors for $14,400 cash.

6. Record the cost of goods sold for 180 razors.

7. Record the replacement of 24 razors that were returned under the warranty.

8. Record the estimated warranty expense at 7% of December sales.

2018 entries

1. Record the sales revenue of 120 razors for $9,600 cash.

2. Record the cost of goods sold for 120 razors.

3. Record the replacement of 29 razors that were returned under the warranty.

4. Record the adjusting entry for warranty expense for the month of January 2018.

How much warranty expense is reported for November 2017?

How much warranty expense is reported for December 2017?

How much warranty expense is reported for January 2018?

What is the balance of the Estimated Warranty Liability account as of December 31, 2017?

What is the balance of the Estimated Warranty Liability account as of January 31, 2018?

On October 29, 2017, Lobo Co.began operations by purchasing razors for resale. Lobo uses the perpetual inventory 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 company's cost per new razor is $15 and its retail selling price is $80 in both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. 2017 Nov. 11 Sold 68 razors for $4,88e cash. 0 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty 16 Sold 188 razors for $14,488 cash 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2018 Jan. 5 Sold 128 razors for $9,680 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry 1a. Prepare journal entries to record above transactions and adjustments for 2017 1b. Prepare journal entries to record above transactions and adjustments for 2018