problem 9-4a estimating warranty expense and liabillity

Ch 9: Homework Help Part 5 of 5 Required Information Problem 9.4A Estimating warranty expense and liability LO P4 (The following information applies to the questions displayed below! points On October 29, Lobo Co. 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 raror is $15 and its retail seling price is $80. The company expects warranty costs to equal 5% of dollar sales. The following transactions occurred. Mo. 11 Bold 70 var for 85,600 cash 30 Recognised warranty expense related to over wales with an aduating entry De Replaced 14 that were returned under the warranty 16 Bold 20 resor for 16,00 cash. 29 Meplaced 20 r that were returned under the warranty 31 Recognised warranty expense related to December sales with an adjusting entry. Jan. 5 sold 10 Ter for 11,200 cash. 17 Replaced 3) rere that were returned under the warranty. 31 Recognized warranty expense related to Janary sales with an adjusting entry. Problem 9-4A Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? MacBook Air