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Accounting

Required information
[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 $14 and its retail selling price is $70. The company expects warranty costs to equal 8% of
dollar sales. The following transactions occurred.
What is the balance of the Estimated Warranty Liability account as of January 31?
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