Klara Inc. started operation on January 1 2021 manufacturing portable generators. During 2021, Klara Inc. sold 2,000 generators, each with two year warranty. It's estimated that about 1% of the generators will be defective and need repair. The estimated cost of the warranty to Klara is $600 to service each defective generator. During 2021, Klara spent $7,000 on warranty claims, repairing or replacing defective generators. Required: what is the 2021 ending balance of warranty liablity of Klara Inc. pertaining to its generators?