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 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 $15 and its retail selling price is $60. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $4,800 cash. November 30 Recognized warranty expense related to November sales with an adjust ing entry, December 9 Replaced 16 razors that were returned under the warranty. December 16 Sold 240 razors for $14,400 cash. December 29 Replaced 32 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 160 razors for $9,600 cash. January 17 Replaced 37 razors that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. Required: 1. Prepare journal entries to record above transactions and adjustments. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 2 III. 12 > Record the sales revenue of 80 razors for $4,800 cash. Note: Enter debits before credits. General Journal Debit Credit Date November 11 Record entry Clear entry View general journal Problem 11-4A (Algo) Part 2 2. How much warranty expense is reported for November and for December? Warranty expense for November Warranty expense for December Problem 11-4A (Algo) Part 3 3. How much warranty expense is reported for January? Warranty expense Problem 11-4A (Algo) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 31? Estimated warranty liability balance Problem 11-4A (Algo) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance