Required information The following information applies to the questions displayed below. On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost r new razor is $13 and its retail selling price is $70 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following ransactions and events occurred 2016 ov. 11 Sold 50 razors for $3,500 cash 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 10 razors that were returned under the warranty 16 Sold 150 razors for $10,500 cash. 29 Replaced 20 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry. 2017 Jan. 5 Sold 100 razors for $7,000 cash 17 Replaced 25 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? Estimated warranty lablilty balance 860