On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returmed, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is S16 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 2016 ov Sold 60 razors for $4.800 cash Recognized warranty expense related to November sales with an adjusting entry. 12 razors that were returned under the warranty ec 180 razors for $14,400 cash 24 razors that were returned under the warranty Recognized warranty expense related to December sales with an adusting entry 2017 an d 120 razors for $9,600 cash 29 razors that were returned under the warranty warranty expense related to January sales with an adjusting entry 1.1 Prepare journal entries to record above transactions and adjustments for 2016 1 Record the sales revenue of 60 razors for $4,800 cash. Record the cost of goods sold for 60 razors. 2 Record the cost of goods sold for 180 razors. 6 Record the estimated warranty expense at 6% of November sales. Record the replacement of 24 razors that were returned under the warranty. 7 Record the replacement of 12 razors that were returned under the warranty. 4 Record the estimated warranty expense at 6% of December sales. B s Record the sales revenue of 180 razors for $14,400 cash. 1.2 Prepare journal entries to record above transactions and adjustments for 2017 Record the sales revenue of 120 razors for $9,600 cash. 2 Record the cost of goods sold for 120 razors. 3 Record the replacement of 29 razors that were returned under the warranty. Record the adjusting entry for warranty expense for the month of January 2017 4 2. How much warranty expense is reported for November 2016 and for December 2016? Warranty expense for November 2016 Warranty expense for December 2018 3. How much warranty expense is reported for January 2017? expense 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017? ance mated warran On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returmed, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is S16 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 2016 ov Sold 60 razors for $4.800 cash Recognized warranty expense related to November sales with an adjusting entry. 12 razors that were returned under the warranty ec 180 razors for $14,400 cash 24 razors that were returned under the warranty Recognized warranty expense related to December sales with an adusting entry 2017 an d 120 razors for $9,600 cash 29 razors that were returned under the warranty warranty expense related to January sales with an adjusting entry 1.1 Prepare journal entries to record above transactions and adjustments for 2016 1 Record the sales revenue of 60 razors for $4,800 cash. Record the cost of goods sold for 60 razors. 2 Record the cost of goods sold for 180 razors. 6 Record the estimated warranty expense at 6% of November sales. Record the replacement of 24 razors that were returned under the warranty. 7 Record the replacement of 12 razors that were returned under the warranty. 4 Record the estimated warranty expense at 6% of December sales. B s Record the sales revenue of 180 razors for $14,400 cash. 1.2 Prepare journal entries to record above transactions and adjustments for 2017 Record the sales revenue of 120 razors for $9,600 cash. 2 Record the cost of goods sold for 120 razors. 3 Record the replacement of 29 razors that were returned under the warranty. Record the adjusting entry for warranty expense for the month of January 2017 4 2. How much warranty expense is reported for November 2016 and for December 2016? Warranty expense for November 2016 Warranty expense for December 2018 3. How much warranty expense is reported for January 2017? expense 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017? ance mated warran