In 2014, Slimon Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty: 2% Second year of warranty: 5%

Sales and actual warranty expenditures were: 2014: sales of $300,000; warranty expenditures of $10,000 2015: sales of $400,000; warranty expenditures of $20,000

What is the estimated warranty expense in 2015?