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.

www.starpromoz Connect board Learn ?Rege Help Save & ExitSubmit Saved R 11 HOMEWORK -Prob. 1A, 2 Check my work Required information Problem 11-4A Warranty expense and liability estimation LO P4 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 $80 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 80 razors for $6,400 cash. 30 Recognized warranty expense related to November salesr with an adjusting entry Dec. 9 Replaced 16 razors that were returned under the warranty 16 Sold 240 razors for $19,200 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry 2017 an. 5 Sold 160 razors for $12,880 cash. 17 Replaced 37 razors that were returned under the warranty 31 Recognized warranty expense related to January sales with an adjusting entry Problem 11-4A Part 1 1.1 Prepare journal entries to record above transactions and adjustments for 2016 C Prev 1 of 11