ework Assignment Saved Help Save & Exit Subi Check my work Required Information 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 malls 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 Sold 105 retorn for $7,875 canh. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razore for $16.500 cash. December 29 Replaced 30 rators that were returned under the warranty. December 1 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11,250 cash January 17 Replaced 50 carors that were returned under the warranty. January 31 Recognized warranty expenso related to January sales with an adjusting entry. Problem 9-4A (Static) Part 3 3. How much warranty expense is reported for January? Warranty expense