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Problem $11-4$A $($Static$)$ Estimating warranty expense and liability LO P$4$

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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$$s cost per new razor is $$20$ and its retail selling price is $$75.$ The company expects warranty costs to equal $8\%$ of dollar sales. The following transactions occurred.

November $11$ Sold $105$ razors for $$7,875$ cash.

November $30$ Recognized warranty expense related to November sales with an adjusting entry.

December $9$ Replaced $15$ razors that were returned under the warranty.

December $16$ Sold $220$ razors for $$16,500$ cash.

December $29$ Replaced $30$ razors that were returned under the warranty.

December $31$ Recognized warranty expense related to December sales with an adjusting entry.

January $5$ Sold $150$ razors for $$11,250$ cash.

January $17$ Replaced $50$ razors that were returned under the warranty.

January $31$ Recognized warranty expense related to January sales with an adjusting entry.

Problem $11-4$A $($Static$)$ Part $1$

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$1.$ Prepare journal entries to record above transactions and adjustments.