1 answer

On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo uses the...

Question:

On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The
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 new razor is $15 and its retail selling price is $60 in both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 5% of dollar sales. The following transactions and events occurred. 2017 Nov. 11 Sold 70 razors for $4,200 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $12,600 cash 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2018 Jan 5 Sold 140 razors for $8,400 cash. 17 Replaced 33 rators that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9-4A Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2018? Estimated warranty liability balance

Answers

5
Warranty expense for November 2016 210 =4200*5%
Warranty expense for December 2016 630 =12600*5%
Warranty expense for January 2017 420 =8400*5%
Less: Cost of replacements -1125 =(14+28+33)*15
Estimated Warranty Liability balance 135
.

Similar Solved Questions

1 answer
Halide [email protected] and product in the s synthesis of a carboxylic acid from thea Br 16....
halide [email protected] and product in the s synthesis of a carboxylic acid from thea Br 16. Give t e product of the following sequence of reactions: 0 SoCl2 CH3OH он 17. Draw the product of the following reaction: BONUS: Give the IUPAC name of the product of the above reaction. 18. Glucosami...
1 answer
Heat flow by conduction problem
Over what distance must there be heat flow by conduction from theblood capillaries beneath the skin to the surface if thetemperature difference is 0.45C°?Assume 190 Wmust be transferredthrough the whole body's surface area of 1.4 m2. mm...
1 answer
Constants A very long insulating cylinder of charge of radius 2.60 cm carries a uniform linear...
Constants A very long insulating cylinder of charge of radius 2.60 cm carries a uniform linear density of 14.0 nC/m f you put one probe of a voltmeter at the surface, how far from the surface must the other probe be placed so that the voltmeter reads 150 V ? cm...
1 answer
Several archeology students are unprepared for a surprise true/false test with 13 questions, and all of...
Several archeology students are unprepared for a surprise true/false test with 13 questions, and all of their answers are guesses. Find the mean for the number of correct answers for such students. (Round answer to one decimal place.) μ = Find the standard deviation for the number of correct answ...
1 answer
In the U - 1001 insulin syringe, 100 units= what mL
In the U - 1001 insulin syringe, 100 units= what mL...
1 answer
10 Given the following data, determine the rate constant, k, of the reaction A(g)+ 2 Bg)-C(g)+2D(g)...
10 Given the following data, determine the rate constant, k, of the reaction A(g)+ 2 Bg)-C(g)+2D(g) Expeniment Al (tor) (81 om Rate tornis t of 250 250 50 1.34 0.331 0.266 2...
2 answers
On May 2, 2019, Karen placed in service a new sports utility vehicle that cost $60,000...
On May 2, 2019, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6.300 lbs. The vehicle is used 100% for business. Karen wants to use both $179 and additional first- year depreciation. Karen's total cost recovery for 2019 is $32000...
1 answer
Use the graphical method to construct the shear-force and bending moment diagrams for the beam shown....
Use the graphical method to construct the shear-force and bending moment diagrams for the beam shown. Label all significant points and identify the maximum moments along with their respective locations. 12 ft 10 ft 8 ft FIGURE P7.23 50 kips 560 kip ft 20 kips/ft eC Al 6ft 10 ft 6 ft 12 ft 6 ft FI...
1 answer
The January 1, 2011 statement of financial position of Skittle Company at book and market values...
The January 1, 2011 statement of financial position of Skittle Company at book and market values is as follows: Book Value Fair Value Current Assets P    800,000 P   750,000 Property and Equipment (net) 900,000 1, 000,000 Total Assets P 1,700,...
1 answer
Over a time interval of 1.99 years, the velocity of a planet orbiting a distant star...
Over a time interval of 1.99 years, the velocity of a planet orbiting a distant star reverses direction, changing from +20.7 km/s to -22.0 km/s. Find (a) the total change in the planet's velocity (in m/s) and (b) its average acceleration (in m/s2) during this interval. Include the correct algebr...
1 answer
Please answer question 19 and 20 19, deeantt equal 17.0. The sigpificance level to be saed...
please answer question 19 and 20 19, deeantt equal 17.0. The sigpificance level to be saed in 946 asd the sample iue so be ukes n 73 Te table valuele) to we from the dhi-sqare ir entiom islare 40471 B. 13.181 C 39344 D. 12401 and 39 364 20. Consider the folorwing pairs of measarementa a s4 82 5 3 y1...
1 answer
3. The effect of negative externalities on the optimal quantity of consumption Consider the market for...
3. The effect of negative externalities on the optimal quantity of consumption Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of ste...
1 answer
A national homebuilder builds single-family homes and condominium-style townhouses
A national homebuilder builds single-family homes and condominium-style townhouses. The Excel file House Sales provides information on the selling price, lot cost, type of home, and region of the country (M = Midwest, S = South) for closing during one month. Use Pivot Tables to find the average sell...
1 answer
2. Determine ly and ky. Hint: Section 1 is the left triangle. Section 2 is the...
2. Determine ly and ky. Hint: Section 1 is the left triangle. Section 2 is the right rectangle. Section 3 is the semicircle and section 4 is the empty circle. (20 pts) 4 mm mm 4mm 8 mm -12mm 16 mm...
1 answer
Presented below is information related to Oriole Company. Cost Retail Beginning inventory $201,049 $278,000 Purchases 1,388,000...
Presented below is information related to Oriole Company. Cost Retail Beginning inventory $201,049 $278,000 Purchases 1,388,000 2,166,000 Markups 94,400 Markup cancellations 16,100 Markdowns 33,900 Markdown cancellations 5,100 Sales revenue 2,219,000 Compute the inventory by the conventional retail ...
1 answer
Perry made $34,885 this year
Perry made $34,885 this year. If the inflation rate was 6.5 percent, how much was his salary actually worth? (purchasing power)...
1 answer
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July...
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 82 units $21 8 Sale 66 units 15 Purchase 91 units @ $23 27 Sale 76 units Assuming a perpetual inventory system and using the last-In, first-out (LIFO) method, determine (a) the co...
1 answer
What advantages helped the Americans win the Revolutionary War?
What advantages helped the Americans win the Revolutionary War?...