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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 $$14$ and its retail selling price is $$70.$ The company expects warranty costs to equal $8\%$ of

dollar sales. The following transactions occurred.

What is the balance of the Estimated Warranty Liability account as of January $31?$