Florida Awning Co. introduced a new line of commercial awnings in 2024 that carry a two-year warranty against manufacturer's defects. Based on historical experience with similar products and industry knowledge, warranty costs are expected to approximate 5.8% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales: $7.141,000 Actual warranty expenditures in 2024: $120,000 Actual warranty expenditures in 2025: $86,000 What amount should Florida report as warranty expense related to this new line on its' 2024 income statement