n October 29, 2015, Lobo Co. began operations by purchasing razors or resale Lobo uses he perpetual inventory metho The razors have a a warranty hat requires the company replace any nonworking razor when a razor is returned, the company discards it and mais a new one rom Merchandise inventory to he customer, The company s cost per ne azoris and s reta se n pnce s in both 2015 and 2016. The manufacturer has advised the company to expect warranty costs to equal 8%of dollar sales. The following transactions and events occurred 2015 Nov 11 Sold 60 razors for $4,200 cash. Dec. 9 Replaced 12 razors that were returned under the warranty. 30 Recognized warranty expense related to November sales with an adjusting entry 16 Sold 180 razors for $12,600 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2016 Jan. 5 Sold 120 razors for $8,400 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry