Required information Problem 9.4A (Static) Estimating warranty expense and liability LO P4 [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 lnventory 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. Moventer 11 Sold 105 razorn for $7,875 eash. Hovenber 30 Fecognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the varranty. Decenber 16 sold 220 razors for $16,500 cash. Decenber 29 Meplaced 30 razors that were returned ubder the varranty. becenber 3: Recogoized varranty expense related to Decenber soles with an adjunting entry. January 5 sold 150 razora tor $11,250 cash. January 17 Replaced 50 razors that wore returned under the warranty. Jansary 31 Recognized varranty expente related to January sales with an adjusting entry. Problem 9-4A (Static) Part 1 Required: 1. Prepare joumal entries to record above transactions and adjustments. Journal entry worksheet 234567 Record the sales revenue of 105 razors for $7,875 cash. Note: Enter debits before credits