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Required information [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors
Required information [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 $80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sold 60 razors for $4,800 cash. November 30 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 180 razors for $14,400 cash. December 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 120 razors for $9,600 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. Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the sales revenue of 60 razors for $4,800 cash. Note: Enter debits before credits. General Journal Debit Credit Date November 11 Record entry View general journal Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the cost of goods sold for 60 razors. Note: Enter debits before credits. General Journal Debit Credit Date November 11 Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the estimated warranty expense at 6% of November sales. Note: Enter debits before credits. General Journal Debit Credit Date November 30 Record entry View general journal Clear entry Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the replacement of 12 razors that were returned under the warranty. Note: Enter debits before credits. General Journal Debit Credit Date December 09 Record entry View general journal Journal entry worksheet Record the sales revenue of 180 razors for $14,400 cash. Note: Enter debits before credits. General Journal Debit Credit Date December 16 Journal entry worksheet Record the cost of goods sold for 180 razors. Note: Enter debits before credits. General Journal Debit Credit Date December 16 Journal entry worksheet Record the estimated warranty expense at 6% of December sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Journal entry worksheet Record the sales revenue of 120 razors for $9,600 cash. Note: Enter debits before credits. General Journal Debit Credit Date January 05 Journal entry worksheet Record the cost of goods sold for 120 razors. Note: Enter debits before credits. General Journal Debit Credit Date January 05 Journal entry worksheet Record the replacement of 29 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal January 17 Debit Credit Journal entry worksheet Record the adjusting entry for warranty expense for the month of January. Note: Enter debits before credits. General Journal Debit Credit Date January 31
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