Wall Company sells a product under a two-year warranty. The estimated cost of warranty repairs is 2% of net sales. During Wall's first two years in business, it made the following sales and incurred the following warranty repair costs:

Year 1
Total sales	$ 250,000
Total repair costs incurred	$ 4,500
Year 2
Total sales	$ 300,000
Total repair costs incurred	$ 5,000

What amount should Wall report as warranty expense for year 2?