Answered step by step
Verified Expert Solution
Question
1 Approved Answer
this is all one question! thank u! Required information [The following information applies to the questions displayed below) On October 29, Lobo Co. began operations
this is all one question! thank u!
Required information [The following information applies to the questions displayed below) On October 29, Lobo Co. 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 $14 and its retail selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred, Nov. 11 Sold 89 razors for $7,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $21,600 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 160 razors for $14,400 cash. 17 Replaced 37 razors that were returned under the warranty. 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 12 Journal entry worksheet 1 2 3 4 LO 6 7 8 12 Record the sales revenue of 80 razors for $7,200 cash. Note: Enter debits before credits. Date General Journal Debit Credit Nov 11 7,200 Cash Sales 7,200 Record entry Clear entry View general journal Journal entry worksheet Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started