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 $20 and its retail selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. Novenber 11 Sold 105 razors for $7,875 cash. Novenber 30 Recognized warranty expense related to Novenber sales with an adjusting entry. Decenber 9 Replaced is razors that were returned under the warranty. Decenber 16 Sold 220 razors for $16,500 cash. Decenber 29 Replaced 30 razors that were returned under the warranty. Decenber 31 Recognized warranty expense related to Decenber sales with an adjusting entry. January 5 Sold 150 razors for $11,250 cash. January 17 Replaced 50 razors that were 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