U 11 Homework 14 ! et 3 of 5 2 ante 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 $60. The company expects Warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov. 11 Sold 90 razors for $4,200 cash 30 Recognized warranty expense related to November sales with an adjusting entry. Dec 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $12,600 cash. 29 Replaced 28 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 140 razors for 58,4 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. BOOK Print References 3. How much warranty expense is reported for January? Warranty experts DS ME Si Prev 48 HI