2 ore ome saved 7. Requlred Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] Part 2 of 5 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 $90. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 17 November 30 Decemben a December 15 December 29 December 31 January 5 January 1 January 31 Sold 8 razors for $6.388 cash. Recognized warranty expense related to November sales with an adjusting entry. Replaced 14 razors that were returned under the warranty. Sold 219 razors for $18.998 cash. Replaced 28 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. 3020 100 razons for 12 50e cash. Replaced 33 razors that were returned under the warranty. Hecognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 2 2. How much warranty expenses reported for November and for December! Warranty expense for November Warranty expense for December 8 Required Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] Part 3 of 5 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 $90. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 November De December 9 December 16 December 29 December 31 January 5 January 17 January 31 Sold ye nazors for $6, see cash. Recognized warranty expense related to November sales with an adjusting entry. Rplaced 14 razors that were returned under the warranty. Sold 219 razors for $18.990 cash. Heplaced 28 razors that were returned under the warranty, Recognized warranty expense related to December sales with an adjusting entry. sold 140 razors for $12.500 cash. Replaced 33. razars that were returned under the warranty. Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 3 3. How much warranty expense is reported for January Warranty expense Required Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.) art a of 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 $15 and its retail selling price is $90. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Novembem Be December 9 December 16 December 29 December 1 January 5 January 1 January 31 Sold ve razors for $6,00 cash, Recognized warranty expense related to November sales with an adjusting entry. Replaced 14 razors that were returned under the warranty. 01021 Mars for 18 g cash. Replaced 10 razons that were returned under the warranty Recognized warranty expense related to December sales with an adjusting entry sold 140 razons For $ 1600 cash Replaced 33 razors that were returned under the warranty. Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 317 Estimated warranty ability balance NAH 10 Required Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 The following Information applies to the questions displayed below) Part 5 of 5 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 $15 and its retall selling price is $90. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 November 58 December 9 December 16 December 29 December 31 January 5 January 1 January 31 sold 2 nazors For $6 38 Recognized warranty expense related to November sales with an adjusting entry Replaced 14 nazors that were returned under the warranty, sold 219 razons for 18 wee cash Replaced 28 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. boid 140 razors for $12,5e cash. Replaced 33 razors that were returned under the warranty Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 317 Estimated warranty ability balance