Requirecl Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below] 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 customer. The company's cost per new razor is $14 and its retail selling price is $80. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. November 11 sold 69 razors for $4,200 cash. November 3 Recognized warranty expense related to moventer sales with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. Decenter 16 sold 120 razors for \$14,44e cash. Decenber 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense related to Decenter sales with an adjusting entry. anuary 5 sold 129 azors for $ a , Gee cash. January 17 Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 1 Reculrec: 1. Prepare journal entries to record above transactions and adjustments. Journal entry worksheet Nale: Enlel debis defare ciedis. Required Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below] 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 customer. The company's cost per new razor is $14 and its retail selling price is $80. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. November 11 sold be razors for $4,36e cash. November za Recognized warranty expense related to kovember sales with an adjusting entry. Decenber 9 Replaced 12 razors that were returned under the warranty. December 16 sold 109 razors for $14,400 cash. Decenber 29 Replaced 24 razors that were returned under the warranty. December 31 Recogmized warranty expense related to December sales with an adjusting entry. January 17 Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 1 Requlrec: 1. Prepare journal entries to record above transactions and adjustments. Journal entry worksheet Nale: Enler dedilz Defale crediz. Requlrecl Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90 -day war anty. 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 $80. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. November 11 sold g9 razors for $4, aee cash. November zo Recognized warranty expense related to Novenber sales with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. December 16 sold 180 razors for $14,400 cash. Decenber 29 Replaced 24 razors that were returned under the warranty. December 31 Reoognized warranty expense related to December sales with an adjusting entry. anuary 5 sold 129 azors for to, ege cash. January 17 Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 1 Reculred: 1. Prepare journal entries to record above transactions and adjustments. Journal entry worksheet Record the estimated warranty expense at 9% of November sales. Nale: Enler debis Defare creais. Requlred Intormtation Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below] 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 customer. The company's cost per new razor is $14 and its retail selling price is $80. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. November 11 sold ge razors for $4, see cash. November za Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. December 16 sold 100 razors for \$14,40e cash. Decenber 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 sold 129 razors for January 17 Replaced 29 razors that were returned under the waranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 11-4A (Algo) Part 1 Requlrec: 1. Prepare journal entries to record above transactions and adjustments. Journal entry worksheet