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 $15 and its retail selling price is $70. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred.

-November 11 Sold 50 razors for $3,500 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 $10,500 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 100 razors for $7,000 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.