Required information [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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $60. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. Nov. 11 Sold 60 razors for $3,600 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty. 16 Sold 180 razors for $10,800 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry Dan. 5 Sold 120 razors for $7,200 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 1. Prepare Journal entries to record above transactions and adjustments. View transaction list View journal entry worksheet No Date General Journal 1 Nov 11 Debit Credit Cash 2 Nov 11 Cost of goods sold Merchandise inventory 3 Nov 30 Warranty expense Estimated warranty bability 4 Dec 09 Estimated warranty ability Merchandise inventory 5 Dec 16 Cash 6 Dec 16 Cost of goods sold Merchandise inventory 2. How much warranty expense is reported for November and December? Warranty expense for November Warranty expense for December 3. How much warranty expense is reported for January? Warranty expense 4. What is the balance of the Estimated Warranty Liability account as of December 31? Estimated warranty liability balance 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance