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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

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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 $15 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov. 11 Sold Be razors for $5,60e cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 15 razors that were returned under the warranty 16 Sold 240 razors for $16, cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry 5 Sold 160 razors for $11.200 cash 17. Replaced 37 razors that were returned under the warranty 31 recognized warranty expense related to annuary sales with an adjusting entry. 4. What is the balance of the Estimated Warranty Liability account as of December 312 Estimated warranty ability balance [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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov 11 Sold 80 razors for 35.600 cash. 30 Recognized warranty expense related to November sales with an adjusting entry Dec. Replaced 16 rators that were returned under the warranty: 15 Seld 240 razors for 516,0 canh 29 Replaced 2. rators that were returned under the warranty 11 Mecognized warranty expense related to December sales with an adjusting entry Jan Steld 14 rates for $11,200 cash 17 Replaced as that were returned under the warranty 31 Maconized warranty expense related to January sales with an adjusting entry 5. What is the balance of the Estimated Warranty Liability account as of January 317

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