Karl Inc. introduced a new line of auto covers in 2008 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs are expected to approximate 4% of sales. Sales of the covers in 2008 were $1,500,000. Warranty expense and warranty liability of $60,000 was recorded in 2008. In late 2009, the company's claims experience was evaluated and it was determined that claims were far fewer than expected and 3% rather than 4% was recommended. Sales of the covers in 2009 amounted to $3,200,000 and warranty expenditures in 2009 totaled $72,000. How would this situation be reported and what type of accounting change?