On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. method. The razors have a 90-day warranty that requires the company to replace ar returned the company discards it and mails a new one from Merchandise Inventory per new razor is $15 and its retail selling price is $90 in both 2016 and 2017. The man to expect warranty costs to equal 7% of dollar sales. The following transactions and e 2016 Nov. 11 Sold 70 razors for $6,300 cash. 30 Recognized warranty expense related to November sales with an adjust Dec. 9 Replaced 14 razors that were returned under the warranty. 16 Sold 210 razors for $18,900 cash. 29 Replaced 28 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjust 2017 Jan. 5 Sold 140 razors for $12,600 cash. 17 Replaced 33 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjustin Problem 11-4A Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? Estimated warranty liability balance $ 651