9.

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 $14 and its retail selling price is $70. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred.

November 11	Sold 70 razors for $4,900 cash.
November 30	Recognized warranty expense related to November sales with an adjusting entry.
December 9	Replaced 14 razors that were returned under the warranty.
December 16	Sold 210 razors for $14,700 cash.
December 29	Replaced 28 razors that were returned under the warranty.
December 31	Recognized warranty expense related to December sales with an adjusting entry.
January 5	Sold 140 razors for $9,800 cash.
January 17	Replaced 33 razors that were returned under the warranty.
January 31	Recognized warranty expense related to January sales with an adjusting entry.

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