Required information [The following information applles to the questions displayed below.] On October 29, Lobo...
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Required information [The following information applles 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 $90. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. November 11 Sold 50 razors. for $4,500 cash. Noverber 30 Recognized warranty expense related to November sales with an adjusting entry. Decenber 9 Replaced 10 razorn that were returned under the warranty. December 16 Sold 150 razors for $13,500 cash. December 29 replaced 20 razoru that were returned under the warranty. Decesber 31 Recognized warranty expense related to December nales with an adjusting entry. January 5 Sold 100 razora for $9,000 cash. January 17 Replaced 25 razoril that were returned under the warranty. January 31 Recognized warranty expense related to January sales with an adjusting entry. 5. What is the balance of the Estimated Warranty Liability account as of January 31
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