In 2020. Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturer's defects Based on industry experience, warranty costs were expected to approximate 4% of sales revenue. First-year sales of the heaters were $380,000. An evaluation of the company's claims experience in late 2021 indicated that actual claims were less than expected-3% of sales rather than 4% Assuming sales of the heaters in 2021 were $430,000 and warranty expenditures in 2021 totaled $10,900, what is the 2021 warranty expense? Answer is complete but not entirely correct. Warranty expense $ 120,000