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. Noverber 11 sold 105 razors for $7,875 cash. Novenber 30 Recognized varranty expense related to Novenber salen with an adjusting eatry. becenber 9 Replaced is razors that were returped under the varranty. December 16 sold 220 razors for $16,500 cash. becenber 29 Replaced 30 razors that were returned under the wartanty. Decenber 31 hecognized warranty expense related to decenber salen with an adfusting entry. January 5 sold 150 razors for $11,250 canh. January 17 Replaced 50 razorn that were returned under the warranty. January 31 Recognized warranty expense related to January sales with on adjusting entry. Problem 9.4A (Static) Part 4 4. What is the balance of the Estimated Warranty Liability account as of December 31