Lue Co. began operations by purchasing razors for resale

Question
On October 29, 2010, Lue Co. began operations by purchasing razors for resale. 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 $18 and its retail selling price is $80 in both 2010 and 2011. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. Lue uses the perpetual inventory method.

2010

Don't use plagiarized sources. Get Your Custom Essay on
Lue Co. began operations by purchasing razors for resale
Just from $13/Page
Order Essay

Nov.11 Sold 75 razors for $6,000 cash.

30 Recognized warranty expense related to November sales with an adjusting entry.

Dec. 9 Replaced 15 razors that were returned under the warranty.

16 Sold 210 razors for $16,800 cash.

29 Replaced 30 razors that were returned under the warranty.

31 Recognized warranty expense related to December sales with an adjusting entry.

2011

Jan. 5 Sold 130 razors for $10,400 cash.

17 Replaced 50 razors that were returned under the warranty.

31 Recognized warranty expense related to January sales with an adjusting entry.

1. Prepare journal entries to record above transactions and adjustments for 2010 and 2011

2. How much warranty expense is reported for November 2010 and for December 31, 2010?

3. How much warranty expense is reported for January 2011?

4. What is the balance of the Estimated Warranty Liability account as of December 31, 2010?

5. What is the balance of the estimated warranty Liability account as of January 31, 2011?

My Essay Gram
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(405) 367-3611Email