Question

Part 1.

• November 11 

Record the sales Rev. of 50 razors for $4500 cash 

(Debit Cash $4,500, Credit Cash $4,500)

• November 11

Record the cost of goods sold for 50 razors 

(Debit COGS $750, Credit $750)

• Nov. 30

Record the est. warranty expense at 9% of Nov. sales

(Debit Warranty expense $405, Credit Est. Warranty Liability $405)

• Dec. 9

Record the replacement of 10 razors that were returned under the warranty

(Debit Est. warrantly liability 1$50, Credit M.I. $150)

• Dec. 16

Record sales revenue of 150 razors for $13,500 cash

(Debit Cash $13,500, Credit Sales $13,500)

• Dec. 16 

Record the COGS for 150 razors

(Debit COGS $2,250, Credit M.I. $2,250)

• Dec. 29

Record the replacement of 20 razors that were returned under the warranty

(Debit Est, Warranty liability $300, Credit M.I. $300)

• Dec. 31

Record the est. warranty expense at 9% of Dec. sales

(Debit warranty expense $1,215, Credit Est. warranty liability $1,215)

• Jan. 5

Record the sales revenue of 100 razors for $9,000 cash

(Debit cash $9,000, Credit sales $9,000)

• Jan 5

Record the COGS for 100 razors

(Debit COGS $1,500, Credit M.I. $1,500)

• Jan 17

Record the replacement of 25 razors that were returned under the warranty

(Debit Est. warranty liability $375, Credit M.I. $375)

• Jan 31

Record the adjusting entry for warranty expense for the month of Jan

(Debit Warranty expense $810, Credit Est. warranty liability $810)

Part 2

Warranty expense for Nov. = $405

Warranty esp. for Dec. = $1,215 

Part 3

$810

Part 4

$1,170

Part 5

$1,605