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$[$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 $$14$ and its retail selling price is $$80.$ The

company expects warranty costs to equal $8\%$ of dollar sales. The following transactions occurred.

November $11$ Sold $60$ razors for $$4,800$ cash.

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

December $9$ Replaced $12$ razors that were returned under the warranty.

December $16$ Sold $180$ razors for $$14,400$ cash.

December $29$ Replaced $24$ razors that were returned under the warranty.

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

January $5$ Sold $120$ razors for $$9,600$ cash.

January $17$ Replaced $29$ razors that were returned under the warranty.

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

Required:

Prepare journal entries to record above transactions and adjustments.

Journal entry worksheet

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

Note: Enter debits before credits.

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