Required information Problem 9-4A Estimating warranty expense and liability LO P4 [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 rozor 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 $15 and its retail selling price is $80. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred Hov. 11 Sold be razors for 56,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. bec. 9 Replaced 16 razors that were returned under the warranty. 16 5old 240 razors for $19,200 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to Decenber sales with an adjusting entry. lan. 5 Sold 160 razors for $12, 800 cash. 17 fleplaced 37 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an edjusting entry. Problem 9-4A Part 1 1. Prepare journal entries to rocord above transactions and adjustments. Journal entry worksheet Record the sales revenue of 80 razors for $6,400 cash. Note: Enter debits before credits. Journal entry worksheet 5 Record the cost of goods sold for 80 razors. Note: Enter debits before credits. Journal entry worksheet Record the estimated warranty expense at 8% of November sales. Note: Enter debits before credits. Journal entry worksheet 67812 Record the replacement of 16 razors that were returned under the warranty. Note: Enter debits before credits. Journal entry worksheet