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 $16 and its retail selling price is $80. The company expects warranty costs to equal 5% of dollar sales. The following transactions occurred. Nov. 11 Sold 70 razors for $5,600 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $16,800 cash. 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 140 razors for $11,200 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9-4A Part 1 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet Record the sales revenue of 70 razors for $5,600 cash. Note: Enter debits before credits. General Journal Debit Credit Date Nov 11 Journal entry worksheet Record the replacement of 14 razors that were returned under the warranty. Note: Enter debits before credits. General Journal Debit Credit Date Dec 09 Journal entry worksheet Record the sales revenue of 210 razors for $16,800 cash. Note: Enter debits before credits. Date General Journal Dec 16 Debit Credit Journal entry worksheet Record the estimated warranty expense at 5% of December sales. Note: Enter debits before credits. Date General Journal Dec 31 Debit Credit Journal entry worksheet IIII. Record the cost of goods sold for 140 razors. Note: Enter debits before credits. Date General Journal Jan 05 Debit Credit Journal entry worksheet Record the replacement of 33 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Jan 17 Debit Credit Journal entry worksheet