Required information Problem 9-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] 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 \$13 and its retail selling price is $70. The company expects warranty costs to equal 8% 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. Problem 9-4A (Algo) Part 1 Required: 1. Prepare journal entries to record above transactions and adjustments. Journal entry worksheet Record the sales revenue of 60 razors for $4,200 cash. Note: Enter debits before credits. Journal entry worksheet 4 5 Record the cost of goods sold for 60 razors. Note: Enter debits before credits. Journal entry worksheet 5 6 7 8 Record the estimated warranty expense at 8% of November sales. Note: Enter debits before credits. Journal entry worksheet 1 6 7 8 12 Record the replacement of 12 razors that were returned under the warranty. Note: Enter debits before credits. Journal entry worksheet 1 2 3 7 Record the sales revenue of 180 razors for $12,600 cash. Note: Enter debits before credits. Journal entry worksheet 12345 Record the cost of goods sold for 180 razors. Note: Enter debits before credits. Journal entry worksheet Record the replacement of 24 razors that were returned under the warranty Note: Enter debits before credits. Journal entry worksheet 1 2 3 5 6 7 Record the estimated warranty expense at 8% of December sales. Note: Enter debits before credits. Journal entry worksheet 1567 Record the sales revenue of 120 razors for $8,400 cash. Note: Enter debits before credits. Journal entry worksheet 1 .... 5 6 7 8 Record the cost of goods sold for 120 razors. Note: Enter debits before credits. Journal entry worksheet 1 .... 5 6 7 8 9 Record the replacement of 29 razors that were returned under the warranty. Note: Enter debits before credits. Journal entry worksheet Record the adjusting entry for warranty expense for the month of January. Note: Enter debits before credits