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 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 5old 105 razorn for $7,875 eash. November 30 Recognized warranty expense related to Novenber ales with on adjusting entry. December 3 Heplaced is razort that were returned under the warranty. December 16 sold 220 razore for $16,500 cash. December 29 Replaced 30 razorn that were returned under the warranty. December 31 recognized warranty expense related to December nalen with an adjuating entry. January 5 Sold 150 razora for $11,250 cash. Jabuary 17 heplaced 50 razorm that vere returned under the varranty, January 31 Hecognized warranty expense related to January sales with an adjusting entry. Problem 9-4A (Static) Part 2 2. How much warranty expense is reported for November and for December