In 2016, the Lewis Company sold 16,000 refrigerators. Lewis company estimated that 14% of them would require repairs under the 2 year assurance type warranty at an average cost of $60. During 2016, Lewis company had an actual outlay of $62,000 for repairs under warranty. Lewis Company uses the GAAP approach of accruing warranty expense in the year of the sale
At what amount should the company record warrant expense for 2016.