During 2023 Greengrowing, Inc. developed a new line of trimming shears. These are highly specialized and are sharp shears, which carry a 2-year warranty against manufacturer defects. Greengrowing has estimated based on their experience that warranty costs for similar products are about 2% of net sales in the year of sale and 3% in the year after the initial sales. Net sales and actual warranty expenditures were as follows:

	Net sales	Actual warranty expenditures
2023	$ 45,000	$ 1,000
2024	120,000	3,500

What amount should be in Greengrowing's warranty liability account on December 31, 2024?