The following information applies 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 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 6% of dollar sales. The following transactions occurred.

November 11	Sold 50 razors for $3,500 cash.
November 30	Recognized warranty expense related to November sales with an adjusting entry.
December 9	Replaced 10 razors that were returned under the warranty.
December 16	Sold 150 razors for $10,500 cash.
December 29	Replaced 20 razors that were returned under the warranty.
December 31	Recognized warranty expense related to December sales with an adjusting entry.
January 5	Sold 100 razors for $7,000 cash.
January 17	Replaced 25 razors that were returned under the warranty.
January 31	Recognized warranty expense related to January sales with an adjusting entry.

Required: 1. Prepare journal entries to record above transactions and adjustments.