H9.C6 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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11, 250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry.
H9.C6 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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11, 250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H9.C6
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 malls a new one from Merchandise Inventory to the customer. The
company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of
dollar sales. The following transactions occurred.
November 11
Sold 105 razors for $7,875 cash.
November 30
Recognized warranty expense related to November sales with an adjusting entry.
December 9
Replaced 15 razors that were returned under the warranty.
December 16
Sold 220 razors for $16,500 cash.
December 29
Replaced 30 razors that were returned under the warranty.
December 31
Recognized warranty expense related to December sales with an adjusting entry.
January 5
Sold 150 razors for $11, 250 cash.
January 17
Replaced 50 razors that were returned under the warranty.
January 31
Recognized warranty expense related to January sales with an adjusting entry.
Transcribed Image Text:Journal entry worksheet
<
1
2
Date
November 11
3
Note: Enter debits before credits.
Record entry
4
5
Record the sales revenue of 105 razors for $7,875 cash.
6
General Journal
Clear entry
7
8
Debit
12
Credit
View general journal
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