On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. 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 $15 and its retail selling price is $70. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. 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. Jan. 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. 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. Journal entry worksheet 2 3 4 5 6 7 8 12 Record the sales revenue of 60 razors for $4,200 cash. Note: Enter debits before credits. Date Nov 11 Cash Sales General Journal Debit Credit 4,200 4,200 Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 5 6 7 8 12 Record the cost of goods sold for 60 razors. Note: Enter debits before credits. Date General Journal Debit Credit Nov 11 Cost of goods sold 1,050 Merchandise inventory 1,050 View general journal Record entry Clear entry Journal entry worksheet < 2 3 5 6 7 8 12 Record the estimated warranty expense at 7% of November sales. Note: Enter debits before credits. Date General Journal Debit Credit Nov 30 Warranty expense 210 Estimated warranty liability 210 Record entry Clear entry View general journal Journal entry worksheet < 2 3 4 5 6 7 8 12 Record the replacement of 12 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Debit Credit 210 Dec 09 Estimated warranty liability Merchandise inventory 210 View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 5 6 7 8 12 Record the sales revenue of 180 razors for $12,600 cash. Note: Enter debits before credits. Date Dec 16 Cash Sales General Journal Debit Credit 12,600 21,600 Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the cost of goods sold for 180 razors. Note: Enter debits before credits. Date Dec 16 General Journal Debit Credit Cost of goods sold 3,150 Merchandise inventory 3,150 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 5 6 7 8 12 Record the replacement of 24 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Debit Credit Dec 29 Estimated warranty liability 420 Merchandise inventory 420 View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 5 6 7 8 12 Record the estimated warranty expense at 7% of December sales. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Warranty expense 630 Estimated warranty liability 630 Record entry Clear entry View general journal Journal entry worksheet < 5 6 8 Record the sales revenue of 120 razors for $8,400 cash. Note: Enter debits before credits. Date Jan 05 Cash Sales 0 12 General Journal Debit Credit 8,400 8,400 Record entry Clear entry View general journal Journal entry worksheet < 1 5 6 8 Record the cost of goods sold for 120 razors. Note: Enter debits before credits. 6 10 10 12 Date General Journal Debit Credit Jan 05 Cost of goods sold 2,100 Merchandise inventory 2,100 View general journal Record entry Clear entry Journal entry worksheet < 1 5 6 7 8 9 10 11 12 Record the replacement of 29 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Debit Credit Jan 17 Estimated warranty liability 495 Merchandise inventory 495 Record entry Clear entry View general journal Journal entry worksheet < 1 5 6 7 8 6 10 11 12 Record the adjusting entry for warranty expense for the month of January. Note: Enter debits before credits. Date Jan 31 General Journal Debit Credit Warranty expense 420 420 Estimated warranty liability View general journal Record entry Clear entry