! Required information [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 $16 and its retail selling price is $70 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Sold 70 razors for $4,900 cash. 30 Recognized warranty expense related to November sales with an 9 Replaced 14 razors that vere returned under the warranty. 16 Sold 210 razors for $14,700 cash. 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. adjusting entry Dec. 2017 5 Sold 140 razors for $9,800 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales vith an adjusting entry Jan. 1.1 Prepare journal entries to record above transactions and adjustments for 2016 View journal entry worksheet View transaction list No Date General Journal Debit Credit Cash Nov 11 1 4,900 Sales 4,900 Cost of goods sold ov 1 1,120 Merchandise inventory 1,120 3 ov 30 Warranty expense 294 of 23 Prev 10 11 12 Next > 14 rt 1 of 5 1.2 Prepare journal entries to record above transactions and adjustments for 2017 nts View transaction list Journal entry worksheet eBook 1 2 3 4 Print Record the sales revenue of 140 razors for $9,800 cash. eferences Note: Enter debits before credits. Date General Journal Debit Credit Jan 05 Record entry Clear entry View general journal