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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

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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 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. November 11 5old 80 razors for 35,600 eash. November 30 Pecognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 16 razorn that were returned under the warranty. Decenber 16 Sold 240 razors for $16,800 eash. December 29 Replaced 32 razorn that were returned under the warranty, December 31 Recognized varranty expense related to December sales with an adjusting entry, January 5 Sold 160 razorn for 511,200 eash. January 17 Replaced 37 razorn that were returned under the warranty, January 31 Recognized warranty expense related to January aales with an adjusting entry. 4. What is the balance of the Estimated Warranty Liability account as of December 31 ? 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 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. November 11 Sold 80 razors for $5,600 cash. November 30 Recognized Warranty expense related to November sales with an adjusting entry. December 9 Heplaced 16 razors that were returned under the warranty. December 16 Sold 240 razors for $16,800 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 $11,200 cash. January 17 Replaced 37 razors that were returned under the warranty. Jandary 31 Recognized warranty expense related to January sales with an adjusting entry. 5. What is the balance of the Estimated Warranty Liability account as of January 31

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