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 $13 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Sold 60 rasons for $4,800 cash. 30 secognized warranty expense related to Novenbee wale with an adjusting entry Dec. Replaced 12 rators that were returned under the warranty. 16 Sold 180 rators for $14,400 cash. 29 Replaced 24 Tars that were returned under the Varanty. 31 Recognised warranty expense related to December sales with an adjusting entry. 2017 Jan. Bold 120 razors for 89,600 cash. 17 Replaced 29 cators that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 11 Prepare journal entries to record above transactions and adjustments for 2016. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 1.1 Prepare journal entries to record above transactions and adjustments for 2016. View transaction list Journal entry worksheet