16. At the beginning of 2022 , a company began offering a 1 -year warranty on its products. Warranty expense is estimated to cost 5% of net sales. Net sales in 2022 were $500,000. 8% of the units sold were returned in 2022 and repaired or replaced at a cost of $40,000. What amount of Warranty Expense should be reported on the company's 2022 income statement? Show your calculations. (1 point)