On October 29 , Lobo Company 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 $14 and its retail selling price is $80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sotd 60 razors for $4,800 cash. November 30 Recognized warranty expense related to November sates with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. December 16 Sold 180 razors for $14,400 cash. December 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense retated to Decenber sales with an adjusting entry. January 5 Sold 120 razors for $9,600 cash. january 17 Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense retated to January sates with an adjusting entry. On October 29 , Lobo Company 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 $14 and its retail selling price is $80. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sotd 60 razors for $4,800 cash. November 30 Recognized warranty expense related to November sates with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. December 16 Sold 180 razors for $14,400 cash. December 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense retated to Decenber sales with an adjusting entry. January 5 Sold 120 razors for $9,600 cash. january 17 Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense retated to January sates with an adjusting entry