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$[$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 $$16$ and its retall selling price is $$80.$ The company expects warranty costs to equal $7\%$ of dollar sales. The following transactions occurred.Required:

Prepare journal entries to record above transactions and adjustments.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$12$

Record the sales revenue of $60$ razors for $$4,800$ cash.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$November $11,,,]]$

Prex

$8$ of $14$

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