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12 journal entries in total please Required information Problem 9.4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions
12 journal entries in total please
Required information Problem 9.4A (Algo) 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 malls 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. The company expects warranty cosis to equal 796 of dollar sales. The following transactions occurred. November 11 sold 60 razors for $4,800 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 12 razorn that were returned under the warranty. December 16 sold 180 razors for $14,400 cash. December 29 Replaced 24 razora that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 sold 120 razors for $9,600 cash. January 17 Replaced 29 razora that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry Step by Step Solution
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