Problem $5$ In $2024,$ Neapau Solutions introduced a new line of space heaters that carry a one$-$year warranty against manufacturer$$s defects. Based on industry experience, warranty costs were expected to approximate $5\%$ of sales revenue. First$-$year sales of the heaters were $$340,000.$ An evaluation of the company$$s claims experience in late $2025$ indicated that actual claims were less than expected$4\%$ of sales rather than $5\%.$ Assuming sales of the heaters in $2025$ were $$380,000$ and warranty expenditures in $2025$ totaled $$12,000,$ what is the $2025$ warranty expense? Note: Because the warranty covers only one year, there is no beginning balance in Warranty Liability at the start of each new fiscal year.