Check my Required Information Problem 9-4A (Static) 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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 rators for $7,875 cash November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razore that were returned under the warranty December 16 Sold 220 anos for $16.500 cash December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December wale vith an adjusting entry. January 5 Sold 150 ranore for $11,250 cash January 17 seplaced 50 razore that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9.4A (Static) Part 3 3. How much warranty expense is reported for January? Warranty expense Check my wor Required Information Problem 9-4A (Static) 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 mails a new one from Merchandise Inventory to the customer, The company's cost per new razor is $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 rasora for 57,875 cash November 30 Recognized warranty expense related to Novenber sales with an adjusting entry: December 9 Replaced 15 restore that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 rarors that were returned under the warranty. December 31 Recognised warranty expense related to December sales with an adjusting entry: January 5 Sold 150 razors for $11,250 cash January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9.4A (Static) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 31? Estimated warranty ability balance 950 ST He 9 art 5 of 5 www.ryyprus 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-d When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the The company's cost per new razor is $20 and its retall selling price is $75. The company expects warranty equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razore that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11,250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Ints eBook Print eferences Problem 9-4A (Static) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance