On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. 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 $15 and its retail selling price is $90 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 7% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Sold 60 razors for $5,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 12 razors that were returned under the warranty 16 Sold 180 razors for $16,200 cash 29 Replaced 24 razors that were returned under the warranty 31 Recognized warranty expense related to December sales with an adjusting entry 2017 Jan. 5 Sold 120 razors for $10,800 cash 17 Replaced 29 razors that were returned under the warranty 31 Recognized warranty expense related to January sales with an adjusting entry 1.1 Prepare journal entries to record above transactions and adjustments for 2016. Nov 11 Cash 5.400 Nov 11 Cash 5,400 Nov 30 Warranty expense 432 Estimated warranty liability 432 Dec 08 Estimated warranty liability 180 Cost of goods sold 180 Dec 16 Cash 18,.200 Dec 16 Cost of goods sold 16,200 Dec 29 Warranty expense Cost of goods sold Dec 31 Warranty expense 1,296 Estimated warranty liability 1,296 1.2 Prepare journal entries to record above transactions and adjustments for 2017. Answer is not complete. No Date General Journal Debit Credit 2. How much warranty expense is reported for November 2016 and for December 2016? Warranty expense for November 2016 Warranty expense for December 2016 3. How much warranty expense is reported for January 2017? arranty expense 4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016? Estimated warranty lability balande 3. What is the balance of the Estimated Warranty Liability account as of January 31, 2017? Estmated warranty lability balan