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Prepare journal entries to record above transactions and adjustments

Journal entry worksheet

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 $$14$ and its retail selling price is $$70.$ The company expects warranty costs to equal $7\%$ of dollar sales. The following transactions occurred

November $11$ Sold $70$ razors for $$4,900$ cash.

November $30$ Recognized warranty expense related to November sales with an adjusting entry.

December $9$ Replaced $14$ razors that were returned under the warranty.

December $16$ Sold $210$ razors for $$14,700$ cash.

December $29$ Replaced $28$ razors that were returned under the warranty.

December $31$ Recognized warranty expense related to December sales with an adjusting entry

January $5$ Sold $140$ razors for $$9,800$ cash.

January $17$ Replaced $33$ razors that were returned under the warranty.

January $31$ Recognized warranty expense related to January sales with an adjusting entry.

Journal entry

$\backslash$table$[[1,2,3,4,5,6,7,8,$dots,$12]]$

Record the sales revenue of $70$ razors for $$4,900$ cash.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$November $11,,,],[,,,]]$