problem 9-4A estimating warranty expense and liability

Ch 9: Homework Help Save che 2 Part 2 of Required Information Problem 9-4A Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.) points 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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $80. The company expects warranty costs to equal 5% of dollar sales. The following transactions occurred. Nov. 11 Sold 70 Taon for $5,600 enah. 30 Recognised warranty expense related to November sales with an adjusting entry. Dee. 9 replaced 16 ranore that were returned under the warranty 16 Sold 210 Tarors for $16,800 cash. 29 Replaced 28 rarors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan S Bold 140 T ors for $11, 200 each. 17 Replaced) a re that were returned under the warranty. 31 Recognised warranty expense related to Janary sales with an adjusting entry. Problem 9-4A Part 2 2. How much warranty expense is reported for November and December? Warranty expenser November Warranty expense for December