Required information Problem 11-4A Warranty expense and liability estimation LO P4 [The following information applies to the questions displayed below) On October 29, 2016, Lobo co began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 9% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Gold 60 razors for $4,200 canh. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty. 16 Bold 180 razors for $12,600 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2017 Jan. 5 Sold 120 razors for $8,400 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales vith an adjusting entry. of 5 1.1 Prepare journal entries to record above transactions and adjustments for 2016. View transaction list Journal entry worksheet ok Record the cost of goods sold for 60 razors. Note: Enter debits before credits. Date General Journal Debit Credit Nov 11 Record entry Clear entry View general journal Journal entry worksheet Record the estimated warranty expense at 9% of November sales. Note: Enter debits before credits Date General Journal Debit Credit Nov 30 Record entry Clear entry View general Journal Journal entry worksheet Record the replacement of 12 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Debit Credit Dec 09 Record entry Clear entry View general Journal Journal entry worksheet int Record the replacement of 29 razors that were returned under the warranty. Note: Enter debits before credits. Date General Journal Debit Credit Jan 17 Record entry Clear entry View general Journal Journal entry worksheet