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 $60. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred November 11 Sold 50 razors for $3,000 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 10 razors that were returned under the warranty. December 16 Sold 150 razors for $9,000 cash December 29 Replaced 20 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry: January 5 Sold 180 razors for $6,000 cash. January 17 Replaced 25 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