4 Part 1 of 5 10 points eflook Print References MC Graw Required information Saved Help Save & Exit Submit Check my work [The following information applies to the questions displayed below] On October 29, Lobo Company 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 $13 and its retad selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred November 11 November 30 December 9 December 16 December 29 December 31 January 5 January 17 Sold 60 razors for $5,400 cash. Recognized warranty expense related to November sales with an adjusting entry.. Replaced 12 razors that were returned under the warranty. Sold 180 razors for $16, 200 cash. Replaced 24 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 120 razors for $10,800 cash, Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list 0 < Prev 4 5 6 8 of 8 Next > my work mode: This shows what is correct or incorrect for the work you have completed so far. It dow Required: 1. Prepare journal entries to record above transactions and adjustments. Answer is complete but not entirely correct. No Date General Journal 1 November 11 Cash Sales Debit Credit 5,400 5,400 2 November 11 Cost of goods sold Merchandise inventory 5,400 5,400 3 November 30 Warranty expense 630 Estimated warranty liability 630 4 December 09 Estimated warranty liability Merchandise inventory 300 300 5 December 16 Cash Sales 6 December 16 Cost of goods sold Merchandise inventory 16,500 16,500 4,400 x 4,400 7 December 29 Estimated warranty liability 600 Merchandise inventory 600 8 December 31 Warranty expense Estimated warranty liability 6 January 05 Cash Sales 00 1,320 1,320x 11.250x 11.250x Required information 9 January 05 Cash 11,250 Sales 11,250 10 January 05 Cost of goods sold 3,000 Merchandise inventory 3,000 11 January 17 Estimated warranty liability 1,000 Merchandise inventory 1,000 12 January 31 Warranty expense 900X Estimated warranty liability 900