On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The resorts have a 90 day warranty that requires the company to replace any non working razor. When a razor is returned, the company discards it and mails a new one from the merchandise inventory to the customer. The companys cost per new razor is $14 and its retail selling price is $70 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.

D New Tab Is person contact email pri ettings Adventure Office Lo Shopping Cart: #322 hapter Eleven Homework Saved Help Save & Exi 7 Check Required information Problem 11-4A Warranty expense and liability estimation LO P4 Part 2 of 5 [The following information applies to the questions displayed below] 2 points 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 returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $70 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred eBook 2016 Nov. 11 Sold 58 razors for $3,500 cash. Print 38 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 10 razors that were returned under the warranty. 16 Sold 158 razors for $10,500 cash. 29 Replaced 28 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry. References 2017 an. 5 Sold 180 razors for $7,000 cash. 17 Replaced 25 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry Problem 11-4A Part 2 2. How much warranty expense is reported for November 2016 and for December 2016