1.1 | ||||
Date | General Journal | Debit | Credit | |
11-Nov | Cash | 7,875 | ||
Sales | 7,875 | |||
11-Nov | Cost of goods sold | 2100 | =105*20 | |
Merchandise inventory | 2,100 | |||
30-Nov | Warranty expense | 630 | =7875*8% | |
Estimated warranty liability | 630 | |||
9-Dec | Estimated warranty liability | 300 | =15*20 | |
Merchandise inventory | 300 | |||
16-Dec | Cash | 16,500 | ||
Sales | 16,500 | |||
16-Dec | Cost of goods sold | 4,400 | =220*20 | |
Merchandise inventory | 4,400 | |||
29-Dec | Estimated warranty liability | 600 | =30*20 | |
Merchandise inventory | 600 | |||
31-Dec | Warranty expense | 1,320 | =16500*8% | |
Estimated warranty liability | 1,320 | |||
1.2 | ||||
Date | General Journal | Debit | Credit | |
5-Jan | Cash | 11,250 | ||
Sales | 11,250 | |||
5-Jan | Cost of goods sold | 3,000 | =150*20 | |
Merchandise inventory | 3,000 | |||
17-Jan | Estimated warranty liability | 1000 | =50*20 | |
Merchandise inventory | 1,000 | |||
31-Jan | Warranty expense | 900 | =11250*8% | |
Estimated warranty liability | 900 | |||
2 | ||||
Warranty expense for November 2016 | 630 | =7875*8% | ||
Warranty expense for December 2016 | 1320 | =16500*8% | ||
3 | Warranty expense | 900 | =11250*8% | |
4 | ||||
Warranty expense for November 2016 | 630 | |||
Warranty expense for December 2016 | 1320 | |||
Less: Cost of replacements | -900 | =(15+30)*20 | ||
Estimated Warranty Liability balance | 1050 | |||
5 | Estimated Warranty Liability balance, beginning | 1050 | ||
Warranty expense for January 2017 | 900 | |||
Less: Cost of replacements | -1000 | =50*20 | ||
Estimated Warranty Liability balance | 950 |
Required information [The following information applies to the questions displayed below On October 29,...
Required information The following information applies to the questions displayed below.) On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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 $13 and its retail selling price is $80...
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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov....
! Required information [The following information applies to the questions displayed below On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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...
27 Required information (The following information applies to the questions displayed below) Part 1 of 5 On October 29, 2016, Lobo Co, began operations by purchasing razors for resale Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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...
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 $15 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov....
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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov....
Chapter 09 Homework Saved | 18 Required information The following information applies to the questions displayed below.] Part 1 of 5 points On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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...
Problem 9-4A Warranty expense and liability estimation LO P4 On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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 $20 and its retail selling price is $75 in both...
Required information Problem 11-4A Warranty expense and liability estimation LO P4 The following information applies to the questions displayed below. On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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...
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 $70. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. Nov. 11 Sold 50 razors for $3,500 cash. 30 Recognized warranty expense...