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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

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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 malls 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 6% of dollar sales. The following transactions occurred. November 11 5old 70 razors for $5,600 cash. November 30 Recognized warranty expense related to Novenber sales with an adjusting entry. Decenber 9 Replaced 14 razors that were returned under the warranty. Decenber 16 sold 210 razors for $16, Bee cash. Decenber 29 heplaced 28 razors that were returned under the warranty, Decenber 31 Recognized warranty expense related, to Deceober sales with an adjusting entry. January 5 5old 140 razors for $11,200 cash. January 27 Replaced 33. razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Required: 1. Prepare journal entries to record above transactions and adjustments. Record the sales revenue of 70 razors for $5,600 cash. Record the cost of goods sold for 70 razors. Record the estimated warranty expense at 6% of November sales. Record the replacement of 14 razors that were returned under the warranty. Record the sales revenue of 210 razors for $16,800 cash. Record the cost of goods sold for 210 razors. Record the replacement of 28 razors that were returned Record the replacement of 28 razors that were returned under the warranty. Record the estimated warranty expense at 6% of December sales. Record the sales revenue of 140 razors for $11,200 cash. Record the cost of goods sold for 140 razors. Record the replacement of 33 razors that were returned under the warranty. Record the adjusting entry for warranty expense for the month of January

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