On October 29, 2017, 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 $70 in both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 2017 Nov. 11 Sold 60 razors for $4,200 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 $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. 2018 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.

The folowing information applies to the questions displayed below. On October 29, 2017, 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 $70 In both 2017 and 2018. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred 2017 Nov. 11 Sold 60 razora for $4,200 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 $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 2018 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 1a. Prepare joumal entries to record above transactions and adjustments for 2017 1b. Prepare journal entries to record above transactions and adjustments for 2018. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Required Required 1A 18 Prepare journal entries to record above transactions and adjustments for 2017, Nov 11 Cash Sales Now 11 goods sold Merchandise i Nov 30Warranty expense Estimated liabili c 09 | Estimated warranty i Merchandise i 16 Cash 12 Sales 12 goods sold Merchandise i c 29 | Estimated warranty i Merchandise i Warranty expense Estimated liabili