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Problem $11-4$A $($Algo$)$ Estimating warranty expense and liability LO P$4$

$[$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 $$16$ and its retail selling price is $$90.$ The company expects warranty

costs to equal $7\%$ of dollar sales. The following transactions occurred.

November $11$ Sold $80$ razors for $$7,200$ cash.

November $30$ Recognized warranty expense related to November sales with an adjusting

entry.

December $9$ Replaced $16$ razors that were returned under the warranty.

December $16$ Sold $240$ razors for $$21,600$ 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 $$14,400$ cash.

January $17$ Replaced $37$ razors that were returned under the warranty.

January $31$ Recognized warranty expense related to January sales with an adjusting

entry.

Problem $11-4$A $($Algo$)$ Part $5$

What is the balance of the Estimated Warranty Liability account as of January $31?$

Answer is complete but not entirely correct.