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 6% of sales revenue. First-year sales of the heaters were $310,000. An evaluation of the company's claims experience in late 2021 indicated that actual claims were less than expected-5% of sales rather than 6%. Assuming sales of the heaters in 2021 were $360,000 and warranty expenditures in 2021 totaled $16,000, what is the 2021 warranty expense? Warranty expense