Required Information Problem 9-4A Estimating warranty expense and liability LO P4 [The following Information applies to the questions displayed below] On October 29. Lobo Co. 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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov. A hold Airs razors for $7,875 cash. Diec auranty expense related to November sales with an adjusting entry, Amazons that were returned under the warranty. 1602020 Hazors for $16,500 cash. 3 razors that were returned under the warranty. warranty expense related to December sales with an adjusting entry. 111 cazons for $11.50 cash. He returned under the warranty Problem 9-4A Part 1 A Prepare journal antes to record above transections ond ecjustments Www Faddavon ist NO Date General Journal Debit Credit