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 6% of dollar sales. The following transactions occurred.

November 11	Sold 60 razors for $4,200 cash.
November 30	Recognized warranty expense related to November sales with an adjusting entry.
December 9	Replaced 12 razors that were returned under the warranty.
December 16	Sold 180 razors for $12,600 cash.
December 29	Replaced 24 razors that were returned under the warranty.
December 31	Recognized warranty expense related to December sales with an adjusting entry.
January 5	Sold 120 razors for $8,400 cash.
January 17	Replaced 29 razors that were returned under the warranty.
January 31	Recognized warranty expense related to January sales with an adjusting entry.

Choices to pick from for drop down descriptions:

Accounts payable

Accounts recievable

Bonus payable

Cash

cost of goods sold

defferered income tax liabiity

employee benifits plan payable

employee bonus expense

employee federal income tax payable

employee life insurance payable

employee medical insurance payable

employee union dues payable

estimated warrenty liability

federal unemployment tax payable

Fica medicare tax payable

Fica social secrity tax payable

income tax payable

interest expense

interst payable

interest recievable

interest revenue

merchandise inventory

notes payable

notes recievable

parts inventory

payroll tax expenses

salaries expenses

salaries payable

sales

sales discounts

sales returns and allowances

sales tax payable

sales tax revenue

sales unemployment tax payable

ticket revenue

unearned service revenue

unearned ticket revenue

vacation benifit expense

vacation benift payable

warrenty expense

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