American Business Services introduced a new machine on January 1, 2014. The machine carried a two-year warranty against defects. The estimated warranty costs related to dollar sales were 3% in the year of sale and 5% in the year after sale. Additional information follows:

year sales actual warranty expenditures

2014 50000 $ 900

2015 80000 4200

If the expense warranty accrual method is used, what amount relating to warranties should be reflected on the December 31, 2015, balance sheet?