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Required information Problem 1 1 - 4 A ( Algo ) Estimating warranty expense and liability LO P 4 [ The following information applies to

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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 $15 and its retail selling price is $90. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred.Problem 11-4A (Algo) Part 22. How much warranty expense is reported for November and for December?
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