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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 1.1 Sold 105 razorg for $7,875 cash. November 30 Recognized warranty expense related to Novembor sales with an adjuting entry. December, 9 peplaced 15 razore that were returned undor the warranty. Decerber 16 Sold 220 razoril for $16,500cash. December 29 Peplaced 30 razors that were returned under the warranty. December 31 Pecognizod warranty expense related to Decenber gales with an adjusting entry. January 5 Sold 150 razors for $11,250 cath. January 17 Replaced 50 razors that were returned undex the warranty. January 31 Pecognized warfanty expense related to January gales with an adjusting entry. Answer is not complete