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 retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. (8 00:4116 2016 Nov. 11 Sold 70 razors for $5,600 cash. 3e 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 $16,800 cash. 29 Replaced 25 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2017 Jan. 5 Sold 148 razors for $11,280 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 1.1 Prepare journal entries to record above transactions and adjustments for 2016. View transaction list View journal entry worksheet No General Journal Debit Credit Date Nov 11 Cash Required information 1 Prepare journal entries to record above transacuons and adjustments for ZUID. 2 1 View transaction list Part 1 of 5 Journal entry worksheet O O O O O O O (8 00M. Record the sales revenue of 70 razors for $5,600 cash. Note: Enter debits before credits General Journal Debit Credit Cash 5,600 Sales 5,600 Record entry Clear entry View general Journal --- View transaction list Part 1 of 5 Journal entry worksheet 3 points 6 0 8 (8 0044.00 Record the cost of goods sold for 70 razors. Note: Enter debits before credits Date Credit General Journal Warranty expense Estimated warranty liability Debit 392 Nov 11 Record entry Clear entry View general Journal Part 1 of 5 Journal entry worksheet points 8004850 Record the replacement of 14 razors that were returned under the warranty Note: Enter debts before credits Debit Credit Dec 09 General Journal Lotimated warranty liability Merchandise inventory Record entry Clear entry View general Journal 27 Prepare journal entries to record above transacuons and adjustments for ZUID. View transaction list Part 1 of 5 Journal entry worksheet