Required information [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 mails 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 8% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $6,400 cash. November 30 Recognised varranty expense related to November sales with an adjusting entry. December 9 December 14 Replaced 16 razors that were returned under the warranty. sold 240 razors for $19,200 cash. December 29 December 31 January 5 Replaced 32 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 160 razors for $12,800 cash. January 17 Replaced 37 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. quired: Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet 5 6 7 Record the sales revenue of 80 razors for $6,400 cash. 8 ***** 12 > Journal entry worksheet < Note: Enter debits before credits Date November 11 Record the cost of goods sold for 80 razors. Record entry 4 5 Note: Enter cebits before credits General Journal Journal entry worksheet Clear entry 5 6 6 7 7 8..... Debit 12 8... Credit View general journal 12 Record the replacement of 16 razors that were returned under the warranty > > Journal entry worksheet Record the estimated warranty expense at 8% of November sales. Note: Enter debts beforecrets Date November 30 Record entry General Journal Clear entry O Journal entry worksheet Note: Enter cebits before cred 5 6 7 Record the sales revenue of 240 razors for $19,200 cash Debit 12 Credit View general journal 8 12 > >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Record the cost of goods sold for 240 razors.
Note: Enter debits before credits.
L
Date
December 16
Record entry
Journal entry worksheet
< 1 ..... 4
Note: Enter debits before credits.
Date
January 05
General Journal
5
Note: Enter debits before credits.
Clear entry
Date
January 31
6
Record the sales revenue of 160 razors for $12,800 cash.
ournal entry worksheet
K 1 ... 5 6 7 8 9
General Journal
7
8
General Journal
10
Debit
Debit
Record the adjusting entry for warranty expense for the month of January.
View general Journal
12
Credit
Credit
11 12
Debit Credit
Record the replacement of 32 razors that were returned under the warranty.
Note: Enter debits before credits.
Date
December 29
Record entry
1
Journal entry worksheet
General Journal
Note: Enter debits before credits.
Date
January 05
Clear entry
Record the cost of goods sold for 160 razors.
Record entry
5 6 7 8
General Journal
Clear entry
Debit
10
Debit
Credit
View general Journal
12
Credit
View general journal
Record the estimated warranty expense at 8% of December sales.
Note: Enter debits before credits.
Date
December 31
>
Record entry
<
Journal entry worksheet
General Journal
Clear entry
1 ... 5 6 7 8 9 10
Note: Enter debits before credits.
Date
January 17
Record entry
Debit
General Journal
Record the replacement of 37 razors that were returned under the warranty.
Clear entry
11
Debit
Credit
View general Journal
12
Credit
View general journal
>
Transcribed Image Text:Record the cost of goods sold for 240 razors. Note: Enter debits before credits. L Date December 16 Record entry Journal entry worksheet < 1 ..... 4 Note: Enter debits before credits. Date January 05 General Journal 5 Note: Enter debits before credits. Clear entry Date January 31 6 Record the sales revenue of 160 razors for $12,800 cash. ournal entry worksheet K 1 ... 5 6 7 8 9 General Journal 7 8 General Journal 10 Debit Debit Record the adjusting entry for warranty expense for the month of January. View general Journal 12 Credit Credit 11 12 Debit Credit Record the replacement of 32 razors that were returned under the warranty. Note: Enter debits before credits. Date December 29 Record entry 1 Journal entry worksheet General Journal Note: Enter debits before credits. Date January 05 Clear entry Record the cost of goods sold for 160 razors. Record entry 5 6 7 8 General Journal Clear entry Debit 10 Debit Credit View general Journal 12 Credit View general journal Record the estimated warranty expense at 8% of December sales. Note: Enter debits before credits. Date December 31 > Record entry < Journal entry worksheet General Journal Clear entry 1 ... 5 6 7 8 9 10 Note: Enter debits before credits. Date January 17 Record entry Debit General Journal Record the replacement of 37 razors that were returned under the warranty. Clear entry 11 Debit Credit View general Journal 12 Credit View general journal >
!
Required information
[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 8% of
dollar sales. The following transactions occurred.
November 11 Sold 80 razors for $6,400 cash.
November 30
December 9
December 16
December 29
December 31
January 5
January 17
January 31
View transaction list
Recognized warranty expense related to November sales with an adjusting entry.
Replaced 16 razors that were returned under the warranty.
Sold 240 razors for $19,200 cash.
Replaced 32 razors that were returned under the warranty.
Recognized warranty expense related to December sales with an adjusting entry.
Sold 160 razors for $12,800 cash.
Required:
1. Prepare journal entries to record above transactions and adjustments.
Replaced 37 razors that were returned under the warranty.
Recognized warranty expense related to January sales with an adjusting entry.
Journal entry worksheet
< 1 2 3 4 5 6 7
Date
November 11
Record the sales revenue of 80 razors for $6,400 cash.
Note: Enter debits before credits.
General Journal
8
Debit
12
Credit
>
Journal entry worksheet
<
1
Date
November 11
2
Note: Enter debits before credits.
Record entry
Record the cost of goods sold for 80 razors.
3
Date
December 09
4
Note: Enter debits before credits.
Journal entry worksheet
<1 2 3 4
Record entry
5
General Journal
Clear entry
5
General Journal
Journal entry worksheet
Clear entry
6
7
7
8 ..... 12
Record the replacement of 16 razors that were returned under the warranty.
Debit
8.
Credit
View general journal
Debit
12
Credit
View general journal
>
>
Journal entry worksheet
Note: Enter debits before credits.
Date
November 30
Record entry
Record the estimated warranty expense at 8% of November sales.
4
Note: Enter debits before credits.
Journal entry worksheet
Date
December 16
5
Racord entry
General Journal
Clear entry
5
Record the sales revenue of 240 razors for $19,200 cash.
General Journal
7
6
Clear entry
7
Debit
8
Dobit
12
Credit
View general Journal
12
Credit
View general journal
>
-
Transcribed Image Text:! Required information [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 8% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $6,400 cash. November 30 December 9 December 16 December 29 December 31 January 5 January 17 January 31 View transaction list Recognized warranty expense related to November sales with an adjusting entry. Replaced 16 razors that were returned under the warranty. Sold 240 razors for $19,200 cash. Replaced 32 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 160 razors for $12,800 cash. Required: 1. Prepare journal entries to record above transactions and adjustments. Replaced 37 razors that were returned under the warranty. Recognized warranty expense related to January sales with an adjusting entry. Journal entry worksheet < 1 2 3 4 5 6 7 Date November 11 Record the sales revenue of 80 razors for $6,400 cash. Note: Enter debits before credits. General Journal 8 Debit 12 Credit > Journal entry worksheet < 1 Date November 11 2 Note: Enter debits before credits. Record entry Record the cost of goods sold for 80 razors. 3 Date December 09 4 Note: Enter debits before credits. Journal entry worksheet <1 2 3 4 Record entry 5 General Journal Clear entry 5 General Journal Journal entry worksheet Clear entry 6 7 7 8 ..... 12 Record the replacement of 16 razors that were returned under the warranty. Debit 8. Credit View general journal Debit 12 Credit View general journal > > Journal entry worksheet Note: Enter debits before credits. Date November 30 Record entry Record the estimated warranty expense at 8% of November sales. 4 Note: Enter debits before credits. Journal entry worksheet Date December 16 5 Racord entry General Journal Clear entry 5 Record the sales revenue of 240 razors for $19,200 cash. General Journal 7 6 Clear entry 7 Debit 8 Dobit 12 Credit View general Journal 12 Credit View general journal > -
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