oher 29, 2014, Lobo Co. began operations by purchasing razors for resale. Lobo uses tepwokWarranty expention On thod. The razors have a 90-day warranty that requires the company to replace any e razors have purchasing razors for resale. Lobo uses the perpetual Problem 11-4A ing razor. When a razor is returned, the Inventory to the customer. The company's cost per new razor is $20 and its retail selling price is $75 in P4 th2014 and 2015 The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred. company discards it and mails a new one from Merchandise arranty expense and liability estim ati 2014 Nov. 11 Sold 105 razors for $7,875 cash Recognized warranty expense related to November sales with an adjusting entry. 30 Dec. 9 Replaced 15 razors that were returned under the warranty 16 Sold 220 razors for $16,500 cash. 29 Replaced 30 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry 2015 Jan. 5 Sold 150 razors for $11,250 cash. 17 Replaced 50 razors that were returned under the warranty 31 Recognized warranty expense related to January sales with an adjusting entry Required 1. Prepare journal entries to record these transactions and adjustments for 2014 and 2015. 2. How much warranty expense is reported for November 2014 and for December 2014? Check (3) $900 3. How 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2014? 5. What is the balance of the Estimated Warranty Liability account as of January 31, 2015? much warranty expense is reported for January 201S? 4) $1,050 Cr (5) $950 Cr