On October 29, 2014, 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 $60 in both 2014 and 2015. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred.

2014

Nov. 11 Sold 60 razors for $3,600 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 $10,800 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry.

2015

Jan. 5 Sold 120 razors for $7,200 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry.

1.1

Prepare journal entries to record these transactions and adjustments for 2014.

Record the sales revenue of 60 razors for $3,600 cash

Record the cost of goods sold for 60 razors.

Record the estmated warranty expense at 7% of Nov sales.

Record the replacement of 12 razors that were returned under the warranty

Record the sales revenue of 180 razors for $10,800 cash.

Record the cost of goods sold for 180 razors.

Record the replacement of 24 razors that were returned under the warranty.

Record the estimated warranty expense at 7% of December sales.

1.2

Prepare journal entries to record these transactions and adjustments for 2015. Record the sales revenue of 120 razors for $7,200 cash. Record the cost of goods sold for 120 razors. Record the replacement of 29 razors that were returned under the warranty. Record the adjusting entry for warranty expense for the month of January 2015.