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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
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 customet. The company's cost per new razor is $16 and its retall seling price is \$80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. Novenber 11 sold 70 razors for $5,600 cash. Noveaber 38. Recognized warranty expense related to Noventer sales with an adjusting entry, Decenber 9 Replaced 14 razors that were returned under the warranty. December 16 sold 210 razors for $16, Bee cash. Deconber 29 geplaced 28 razors that were returned under the warranty. Decenber 31 Recognized warranty expense related, to Decenber sales with an adjusting entry. zanuary 5 sold 140 razors for $11, 20e cash. Jasuary 27 Meplaced 33 razors that were returned under the warranty, January 31 Aecognized warranty expense related to January tales with an adjusting entry. 4. What is the baiance of the Estimated Warranty Liability account as of December 31
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