On November 10, Lee Company began operations by purchasing coffee grinders for resale. The grinders have a 60-day warranty. When a grinder is returned, the company discards it and mails a new one from merchandising inventory to the customer. The company's cost per new grinder is $24 and its retail selling price is $50. The company expects warranty costs to equal 10% of dollar sales. The following transactions occurred: Nov 16- Sold 50 grinders for $2,500 cash. Nov 30- Recognized warranty expense related to November sales with an adjusting entry. Dec 12- Replaced 6 grinders that were returned under warranty. Dec 18- Sold 200 grinders for $10,000 cash. Dec 28- Replaced 17 grinders that were returned under warranty. Dec 31- Recognized warranty expense related to December sales with an adjusting entry. Jan 7- Sold 40 grinders for $2,000 cash. Jan 21- Replaced 36 grinders that were returned under warranty. Jan 31- Recognized warranty expense related to January sales with an adjusting entry. Required: 1. Prepare journal entries to record these transactions and adjustments (JE Tab). 2. How much warranty expense is reported for November and for December (Calc tab)? 3. How much warranty expense is reported for January (Calc tab)? 4. What is the balance of the Estimated Warranty Liability account as of December 31 (Calc tab)? 5. What is the balance of the Estimated Warranty Liability account as of January 31 (Calc tab)? 1 DATE ENTRY DEBIT CREDIT 13 14 24 w 34 25. Requirement JE Calc +