SER 2 Chem 2 ors Problem 9-4A (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 rarors 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 $13 and its retail selling price is 580. The company expects warranty costs to of dollar sales. The following transactions occurred. cow November 11 Sold 60 Tators for $4.800 cash November 30 Recognized warranty expense related to November sleuth an adjusting estry. December 9 replaced 12 razors that were toturned under the warranty. December 16 Sold 100 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 rators for $9,600 cash. January 17 Replaced 29 razors that were returned under the warranty January 31 Recognized warranty expense related to Janary sales with an adosting entry int encer Problem 9.4A (Algo) Part 2 2. How much warranty expense is reported for November and for December? 294 Warranty expense for November Warranty expense for December $ 5 882 os Required information Problem 9.4A (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 rators 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 $13 and its retail selling price is $80. The company expects Warranty costs to equal 8% of dollar sales. The following transactions occurred. ed ok November 11 Sold 60 razors for $4,800 cash. November 30 Recognized warranty expense related to Novembet sales with an adjusting entry December 9 Replaced 12 razors that were returned under the warranty. December 16 Sold 180 Eator 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 estry. January 5 Sold 120 rators 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. Problem 9-4A (Algo) Part 3 3. How much warranty expense is reported for January? Warranty expense 11 Next > Parts Required information Problem 9.4A (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 dwy warranty When a razor is returned the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $80. The company expects warranty costs to equal of dollar sales. The following transactions occurred. 20 points Skipped BOOK Print November 11 Sold 60 rarors for $4,000 cash. November 30 Recognized warranty expense related to November sales with an adjustingstry. December 9 Replaced 12 rators that were returned under the warranty. December 16 Sold 180 razors for 514,400 cash. December 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense related to December anles with an adjusting entry. January 5 Sold 120 rators for 59,600 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. References Problem 9-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 317 Estimated warranty liability balance Part 5 of 5 Required Information Problem 9.4A (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 $13 and its retail selling price is $80. The company expects warranty costs to use of dollar sales. The following transactions occurred. 0 sints Skipped ock Print ferences November 11 Sold 60 rators 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. Problem 9-4A (Algo) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance