Required information Problem 9.4A (Algo) Estimating warranty expense and liability LO P4 The following information applles to the questions cisplayed boiow? On October 29, Lobo Company began operabions by purchasing razors for resale. The razors have a 90 -doy warranty When a razor is returned, the company discards it and maits o new one from Merchandise inventory to the customes The compary's cost per new razor is $14 and its retail selling price is $70. The company expects waeranty costs to equal 8 is of: dollar saies. The following transactions occurred. Movinber 11 Sold 60 razora for 34,200 cash. Novenber 30 . Becogniend warranty expense related to Hoverber ales with an adjusting ontry. Decenber 9 . heplaced 12 raxors that vere rotureed under the varranty. Debenber i6 Hodd 160 razcir for $12,600 cash. Desenber 29 heplaced 24 razors that vere returned under tha warranty. Jahuary 17 Beplaned 29 razors that were returned under the warranty, Jenwary 31 kecognized vatranty ekpeato related to Jasiary shinh vith an adjusting entry. Problem 9-4A (Algo) Part 2 2. How much watrerty expense is reported for November and for December? Required intermation Problem 9-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.) Oa October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90 -doy warranty. When a razoe is returned, the company discards it and mails a new ene from Merchandise linventory to the customet. The : company's cost per new razor is $14 and ats retail seling peice is $70. The company expects warranty costs to equal gis of doliar salos. The following transactions occurred. Hoverater 11 sold 60 ratore for $4,200 eash. Hoveriter to Mecognined warranty expense related wo wowiber sales with in adjusing antry. Decneber ? Mrpiaced 12 razors that vere retursed under the warranty. becreber 16 Gold 140 rasora for $12,600 caph. pecteber 28 heptaced 24 fazore that vere returned ander the varranty; Jahienty 3 sold 120 ramors for $1,400 eath. alanaty 17 heplaced 29 razozs that were retwrned under the vatranty. tamuery 31 liecophirad warranty expente related to Ianuary nalea with an adjuating entry. Problem 9-4A (Algo) Part 3 3. How much warranty expense is reported for January? Required information Problem 9-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displiyyod below) On October 29, Lobe Company began operations by purchasing razors for resale. The razoes have a 90 -day warranty: When a razor is returned, the company discards it and mails a new one from Merchandise laventory to the customer. The company's cost per new razor is 514 and its retali seling price is $70. The company expects warranty costs to equal 8 sis af doller sales. The following transactions occurred. Mivamer 11 . Sold 60 razors for 54,200 eash. Novnher 30 j pecogniped warranty expenae related to Movember aalea vitx an adyusilig entry. becriber p peplaced 17 razors that were returned ueder the warranty. Decentoer 16 Told 190 razora .ter 112,600 eash. Deceaber 25 keplaced 24 razers that were; retureed inder the varranty. 7anant 5 . Bold 120 favora for 58,400 eash. Aasaary 17 heplaced 29 razore that were retarned under che varranty. Fnnuary 3t. Fecognizes warranty expende related to , tanuary sales yith as adjuating entiry - Problem 9-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Llability account as of December 3t? Recuired information Problem 9-4A (Algo) Estimating warranty expense and liability LO P4 The following information applies to the questions displayod 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 malls a new one from Merchandise inventory to the customec. The company's cost per new razor is $14 and its retail selliny peice is $70. The company expects wacranty costs to equal gis of doliar sales. The following transactions occurred. Naveber 11 sold 65 zazors for $4,200 cauh. Nowenber to Becognized warranty expense related to noveaber aales with as adyusting astry. necenther ? Replaced 12 razors that vere raturned whdee the warranty. Decenber 16 5old 190 razore for 312,460 eash. Decenter 29. Beplaced 24 razar that vere returned under the varranty. Decenter 31 . Secogsized varranty expense related to Decenber sales with an adjuating antcy. Janosty Sold 120 razori for 58,400 ead. 3enuary iy Repleced 29 razors that were reterned under the warranty. Zenuary 11. pecognitred varranty expeese related to January oales with an adjuatish entry. Problem 9-4A (Algo) Part 5 5. What is the belance of the Cstimated Warranty Liability sccount as of January 31