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Required information The following information applies to the questions displayed below) On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo

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Required information The following information applies to the questions displayed below) On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cos per new razor is $13 and its retail selling price is $90 in both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred. 2017 Nov. 11 Sold 50 razors for $4,500 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 10 razors that were returned under the warranty. 16 Sold 150 razors for $13,500 cash. 29 Replaced 20 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2018 Jan. 5 Sold 100 razors for 59,000 cash. 17 Replaced 25 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Nov. 11 Sold 50 razors for $4,500 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 10 razors that were returned under the warranty. 16 Sold 150 razors for $13,500 cash. 29 Replaced 20 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2018 Jan. 5 Sold 100 razors for $9,000 cash. 17 Replaced 25 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 2. How much warranty expense is reported for November 2017 and for December 2017? Warranty expense for November 2017 Warranty expense for December 2017 new zea warranty expense related to January sales with an adjusting entry. 3. How much warranty expense is reported for January 2018? Warranty expense Nepiace 2 Taur's that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2017? Estimated warranty liability balance 31 Recognized warranty expense related to January sales with an adjusting entry. 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2018? Estimated warranty liability balance

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