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 $14 and its retail selling price is $90 in both 2012 and 2013. The manufacturer has advised the company to expect warranty costs to equal 9% of dollar sales. The following transactions and events occurred.

2012

Nov.	11	Sold 50 razors for $4,500 cash.
	30	Recognized warranty expense related to November sales with an adjusting entry.
Dec.	9	Replaced 10 razors that were returned under the warranty.
	16	Sold 150 razors for $13,500 cash.
	29	Replaced 20 razors that were returned under the warranty.
	31	Recognized warranty expense related to December sales with an adjusting entry.

2013

Jan.	5	Sold 100 razors for $9,000 cash.
	17	Replaced 25 razors that were returned under the warranty.
	31	Recognized warranty expense related to January sales with an adjusting entry. *Prepare journal entries to record above transactions and adjustments for 2012.* 1.Record the sales revenue of 50 razors for $4,500 cash. Nov. 11 2.Record the cost of goods sold for 50 razors. Nov. 11 3.Record the estimated warranty expense at 9% of November sales. Nov 30 4.Record the replacement of 10 razors that were returned under the warranty. Dec 9 5.Record the sales revenue of 150 razors for $13,500 cash. Dec 16 6.Record the cost of goods sold for 150 razors. Dec16 7.Record the replacement of 20 razors that were returned under the warranty. Dec 29 8.Record the estimated warranty expense at 9% of December sales. Dec 31 *Prepare journal entries to record above transactions and adjustments for 2013.* 1. Record the sales revenue of 100 razors for $9,000 cash. Jan 5 2. Record the cost of goods sold for 100 razors. Jan 5 3. Record the replacement of 25 razors that were returned under the warranty. Jan 17 4. Record the adjusting entry for warranty expense for the month of January 2013. Jan 31 This is all one long problem.