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 mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Nov. 11 Sold 50 razors for $3,500 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. 9 Replaced 10 razors that vere returned under the varranty. 16 Sold 150 razors for $10,500 cash. 29 Replaced 20 razors that ere returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 5 Sold 100 razors for $7,000 cash. 17 Replaced 25 razors that ere returned under the varranty. 31 Recognized warranty expense related to January sales with an adjusting entry. Dec. Jan. 1. Prepare journal entries to record above transactions and adjustments Answer is complete but not entirely correct. Answer is complete but not entirely correct. Debit Credit General Journal Date No 3,500 Cash Nov 11 3,500 Sales 280 Warranty expense 2 Nov 11 280 x Estimated warranty liability 126 Estimated warranty liability Merchandise inventory Nov 30 3 126 x 140 Dec 09 Cost of goods sold 140 Merchandise inventory 10,500 Cash Dec 16 5 10,500 Sales Required information Cost of goods sold Dec 16 10,500 6 10,500 Merchandise inventory Estimated warranty liability 280 7 Dec 29 280 Merchandise inventory Warranty expense 1,120 Dec 31 1,120 Estimated warranty liability 7,000 Cash Jan 05 7,000 Sales 7,000 Jan 05 Cost of goods sold 10 7,000 Merchandise inventory 350 Estimated warranty liability 11 Jan 17 Required information 1,120 Estimated warranty liability 7,000 Cash Jan 05 7,000 Sales 7,000 Cost of goods sold Jan 05 10 7,000 Merchandise inventory Estimated warranty liability 350 Jan 17 11 350 Merchandise inventory Warranty expense Estimated warranty liability 434 Jan 31 12 434