2. How much warranty expense is reported for November and for December? Answer is complete and correct. Warranty expense for November $ 432 Warranty expense for December $ 1.296 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 $15 and its retail selling price is $80. The company expects warranty costs to equal 9% 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 December 16 December 29 December 31 January 5 January 17 Replaced 12 razors that were returned under the warranty. Sold 180 razors for $14,400 cash. Replaced 24 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 120 razors for $9,600 cash. Replaced 29 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Problem 9-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 31? Answer is complete but not entirely correct. Estimated warranty liability balance $ 1,260 x 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance