16 O Part 5 of Required information Problem 9.4A (Algo) 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 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 $15 and its retail selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. 4 points 04.06.22 Book Nov. 11 Sold 60 rators for $5,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty. 16 Sold 10 razors for $16,200 cash. 29 Replaced 24 rators that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 sold 120 razors for $10,800 cash. 17 Replaced 29 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales vith an adjusting entry Reference Problem 9-4A (Algo) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 317 Estimated warranty liability balance