Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $16 million and actual warranty expenditures were $41,750 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.)

Warranty Liability
Beg. Bal.	?	?
	?	?	Warranty expense
Actual expenditures	?	?
End Bal.	?	?