o Required Information Problem 11-4A (Algo) 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 resele. The razors have a 90-day warranty. When a razor is returned the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retall selling price is $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. November 11 Sold 50 razors for $4,500 cash. November 30 Recognized warranty expense related to November salon with an adjusting entry. December 9 Replaced 10 razore that were returned under the warranty: December 16 Sold 150 razors for $13,500 cash. December 29 Replaced 20 razors that were returned under the warranty December 31 Recognized warranty expense related to December sales with an adjusting ontry. January 5 Bola 100 razors for $9,000 cash. January 17 Replaced 25 rasors that were returned under the warranty. January 31 Recognized warranty expense related to January salon with an adjusting entry. Problem 11-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 312 Estimated warranty liability balance