N october 29 2010 lue co began operations by purchasing

Assignment Help Accounting Basics

Reference no: EM13607662

n 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

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.

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

Reference no: EM13607662

Questions Cloud

The following data give the 1994 total area of farmland in : the following data give the 1994 total area of farmland in millions of acres for 10 states statistical abstract of the

Below is the data showing closing cost for a purchase of a : below is the data showing closing cost for a purchase of a 336000 house requiring a 20 down payment. title insurance

Each turbine stage operates with an isentropic efficiency : water is the working fluid in a vapor power cycle with superheat and reheat. superheated vapor enters the first turbine

Leavertons forecast of sales is as follows july 60000 : leavertons forecast of sales is as follows july 60000 august 90000 september 130000. sales are normally 80 percent cash

N october 29 2010 lue co began operations by purchasing : n october 29 2010 lue co. began operations by purchasing razors for resale. the razors have a 90-day warranty that

Steam at 10 mpa 600 degrees c enters the first-stage : steam at 10 mpa 600 degrees c enters the first-stage turbine of an ideal rankine cycle with reheat. the steam leaving

John is considering two bank card offers that are the same : john is considering two bank card offers that are the same in all respects except for the following. bank a charges no

The illumination lights in an operating room use a concave : the illumination lights in an operating room use a concave mirror to focus an image of a bright lamp onto the surgical

Spiller corp plans to issue 10 15-year 500000 par value : spiller corp. plans to issue 10 15-year 500000 par value bonds payable that pay interest semiannually on june 30 and

User Account

All Pages