ezto.mine Saved prk #6 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 Co. 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 7% of dollar sales. The following transactions occurred. 0:41 d Nov. 11 Sold 60 razors for $5,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty. 16 Sold 180 razors for $16,200 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry: Jan. 5 Sold 120 razors for $10,800 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9.4A (Algo) Part 1 ces Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet 12 Record the cost of goods sold for 60 razors. Note: Enter debits before credits Date General Journal Debit Credit Nov 11 Record entry Clear entry View general Journal Sidpped Pale journal entries to record above transactions and adjustments. View transaction list eBook Journal entry worksheet eferences 2 4 5 6 7 8 ..... 12 > Record the estimated warranty expense at 7% of November sales. Note: Enter debits before credits General Journal Dato Nov 30 Debit Credit Record entry Clear entry Vlew general Journal View transaction list Book Journal entry worksheet Record the cost of goods sold for 180 razors. Note: Enter debits before credits Dato General Journal Debit Credit Dec 16 Record entry Clear entry View general Journal View transaction list Book Journal entry worksheet Record the replacement of 24 razors that were returned under the warranty. Note: Enter debits before credits Date General Journal Debit Credit Dec 29 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 2 3 4 ch 5 6 7 12 Record the estimated warranty expense at 7% of December sales. Note: Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal 04:08:57 Required: 1. Prepare Journal entries to record above transactions and adjustments. Skipped View transaction list eBook Journal entry worksheet References Record the cost of goods sold for 120 razors. Note: Enter debits before credits Date General Journal Jan 05 Debit Credit Record entry Clear entry View general Journal View transaction list eBook Journal entry worksheet 6 7 8 9 References 1 5 8 10 31 12 Record the replacement of 29 razors that were returned under the warranty. Note: Enter debits before credits Date General Journal Debit Credit Jan 17 Record entry Clear entry View general Journal View transaction list eBook Journal entry worksheet References . 5 6 7 8 9 10 11 03 Record the adjusting entry for warranty expense for the month of January Note: Enter debits before credits Date General Journal Debit Credit Jan 31 Record entry Clear entry View general Journal
