Required Information Problem 9.4A (Static) 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 mals a new one from Merchandise inventory to the customer. The company's cost per new razor is $20 and its retail seling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Noveaber 11 sold 105 razors for 57,875 cash. Noveaber 30 Deceuber 9 Repognized warranty expense related to Novebber sales with an adfusting entry. Deceuber 9 Replaced is razors that were returnied under the warranty. Decenber is Sold 220 razors for $116,560 cash. Decinber it Recognized warranty that were returned ander the warranty. January 5 Sold 15 e razors for $11,25 eash. January. i7 Replaced sa razors that were returned under the wartanty? January in Recognized warranty expense related to Janiary saites with in adjusting entry. Problem 9-4A (Static) Part 1 Required: 1. Prepare joumal entries to record above transactions and adjustments. Journal entry worksheet