1.1 Prepare journal entries to record above transactions and adjustments for 2016.

1.2 Prepare journal entries to record above transactions and adjustments for 2017.

! Required information [The following information applies to the questions displayed below.] On October 29, 2016, 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 $13 and its retail selling price is $60 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Sold 50 razors for $3,000 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. 9 Replaced 10 razors that were returned under the warranty 16 Sold 150 razors for $9,000 cash. 29 Replaced 20 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry. Dec 2017 5 Sold 100 razors for $6,000 cash. 17 Replaced 25 razors that 31 Recognized warranty expense related to January sales with an adjusting entry Jan. were returned under the warranty. 2. How much warranty expense is reported for November 2016 and for December 2016? Warranty expense for November 2016 Warranty expense for December 2016 3. How much warranty expense is reported for January 2017? Warranty expense 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? Estimated warranty liability balance 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017? Estimated warranty liability balance