Chapter 9 Exercises and Problems 18 Required information Seater 18. Oven 31 Help Save & Ex 7 Part 5 of 5 T Problem 9-4A (Static) Estimating warranty expense and liability LO P4 [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. November 11 Gold 10% rasors for $7,875 November 30 Recognised warranty expense related to November sales with anjing entry. December 9 Replaced 15 rasure that were returned under the warranty. h. Replaced 30 razors that were returned under the warranty. December 16 Said 220 razors for $16,500 December 29 PM December 31 Recognised warranty expesse related to December sales with an adjusting entry, Sold 150 razors for $11,250 cash. Replaced 50 razore that were returned under the warranty. January 5 January 17 January 31 Becognized warranty expense related to January sales with an adjusting entry. Problem 9-4A (Static) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 3171 Iwamanty ability balance Check my work