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Chapter 9 i ! Required information [ The following information applies to the questions displayed below. ] On October 2 9 , Lobo Company began

Chapter 9 i
!
Required information
[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 $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred.What is the balance of the Estimated Warranty Liability account as of January 31?Estimated warranty liability balance
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