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. Wovember 11 sold 105 razorn for $7,875 eash. Noveober 30 Recognized varranty expense related to Noveaber sales with an adjusting entry. Decenber 9 heplaced is razori that were returned under the warranty. Decenber 16 sold 220 razorn for 516,500 canh. Decemer 29 peplaced 30 razors that were returned under the warranty. Decenber 31 Recognized wartanty expense celated to Deceaber hales with an adjuating entry. January 5 fiold 150 razori for 511,250 eash. January 17 Replaced 50 ratorn that were returned under the varranty. January 11 Mecognized varranty expense related to January bales ulth an adjusting entry, Problem 9-4A (Static) Part 3 3. How much warranty expense is reported for January