! Required Information Saved [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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. November 11 Sold 60 razors for $4,800 cash. November 30 December 9 December 16 December 29 December 31 January 5 January 17 January 31 Recognized warranty expense related to November sales with an adjusting entry. Replaced 12 razors that were returned under the warranty. Sold 180 razors for $14,400 cash. Replaced 24 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 120 razors for $9,600 cash. Replaced 29 razors that were returned under the warranty. 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 ง Journal entry worksheet 1 2 3 4 5 6 7 8 12 Record the sales revenue of 60 razors for $4,800 cash. Note: Enter debits before credits. Date November 11 General Journal Debit Credit < Prex 8 of 14 Next >
! Required Information Saved [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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. November 11 Sold 60 razors for $4,800 cash. November 30 December 9 December 16 December 29 December 31 January 5 January 17 January 31 Recognized warranty expense related to November sales with an adjusting entry. Replaced 12 razors that were returned under the warranty. Sold 180 razors for $14,400 cash. Replaced 24 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 120 razors for $9,600 cash. Replaced 29 razors that were returned under the warranty. 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 ง Journal entry worksheet 1 2 3 4 5 6 7 8 12 Record the sales revenue of 60 razors for $4,800 cash. Note: Enter debits before credits. Date November 11 General Journal Debit Credit < Prex 8 of 14 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
Required Information
Saved
[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 malls a new one from Merchandise Inventory to the customer. The
company's cost per new razor is $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of
dollar sales. The following transactions occurred.
November 11 Sold 60 razors for $4,800 cash.
November 30
December 9
December 16
December 29
December 31
January 5
January 17
January 31
Recognized warranty expense related to November sales with an adjusting entry.
Replaced 12 razors that were returned under the warranty.
Sold 180 razors for $14,400 cash.
Replaced 24 razors that were returned under the warranty.
Recognized warranty expense related to December sales with an adjusting entry.
Sold 120 razors for $9,600 cash.
Replaced 29 razors that were returned under the warranty.
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
ง
Journal entry worksheet
1
2
3
4
5
6
7
8
12
Record the sales revenue of 60 razors for $4,800 cash.
Note: Enter debits before credits.
Date
November 11
General Journal
Debit
Credit
< Prex
8 of 14
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38a1a19c-c24b-4b91-8983-14972b46dbe6%2Fef1a06db-4667-4e17-97ad-d5dfc1b110d2%2Fmtt4tgq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required Information
Saved
[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 malls a new one from Merchandise Inventory to the customer. The
company's cost per new razor is $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of
dollar sales. The following transactions occurred.
November 11 Sold 60 razors for $4,800 cash.
November 30
December 9
December 16
December 29
December 31
January 5
January 17
January 31
Recognized warranty expense related to November sales with an adjusting entry.
Replaced 12 razors that were returned under the warranty.
Sold 180 razors for $14,400 cash.
Replaced 24 razors that were returned under the warranty.
Recognized warranty expense related to December sales with an adjusting entry.
Sold 120 razors for $9,600 cash.
Replaced 29 razors that were returned under the warranty.
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
ง
Journal entry worksheet
1
2
3
4
5
6
7
8
12
Record the sales revenue of 60 razors for $4,800 cash.
Note: Enter debits before credits.
Date
November 11
General Journal
Debit
Credit
< Prex
8 of 14
Next >
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