Balmer Ltd has a warranty plan. Estimated warranty liability was $50 000 at the beginning of the year. Based on the company's sales for the year, warranty service costing $78 500 in wages and other costs, plus $62 000 in replacement products, was expected to have to be provided eventually. Actual expenditures for the year were $84 000 in wages and other costs and $78 000 in replacement products.

1. Calculate warranty expense for the year and estimated warranty liability at the end of the year.

2. Write one or more journal entries to record Balmer Ltd's warranty experience for the year.