Required information [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 malls 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. November 11 sold 80 razors for $5,600 eash. November 30 Recognized varranty expense related to November ales with an adjusting entry. Decenber 9 Teplaced 16 razors that vere returned ander the varranty. December 16 sold 240 razors for $16,800 cash. Decenber 29 Replaced 32 razors that were returned under the varranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. Januery 5 50ld 160 razors for \$11,200 cash. January 17 Replaced 37 razorn that vere returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. 3. How much warranty expense is reported for January