On October 29, 2012, 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 $13 and its retail selling price is $80 in both 2012 and 2013. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred. 2012 Nov. 11 Sold 60 razors for $4,800 cash. 30 Recognized warranty expense related to November sales with an adjusting entry Dec. 9 Replaced 12 razors that were returned under the warranty. 16 Sold 180 razors for $14.400 cash 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry 2013 Jan 5 Sold 120 razors for $9.600 cash 17 Renaren arazore that were returnerinner the warranty Journal entry worksheet 1 2 3 5 6 7 8 Record the sales revenue of 60 razors for $4,800 cash. Note: Enter debits before credits Date General Journal Debit Credit Nov. 11 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 Record the sales revenue of 120 razors for $9,600 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jan 5 Record entry Clear entry View general journal