Required information [The following information applles 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 malls a new one from Merchandise inventory to the customer. The company's cost per new razor is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Novenber 11 5old 105 razor for $7,875 cash. Novenber 30 Recognized warkanty expense related to Novenber sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. Decenber 16 sold 220 razors for $16,500 cash. December 29 replaced 30 razors that were returned under the warranty. December 31 Recognizod warranty expense related to December sales with an adjusting entry. January 5 sold 150 razors for $11,250 eash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Pecognized warranty expense related to January salon with an adjusting entry. Required: 1. Prepare journal entries to record above transactions and adjustments