Benson Builder Pty Ltd provides a 12-month warranty on building work performed by the entity. On 1 January 2016, there was a credit balance of $80,000 in its Warranty Provision account. During the year ended 31 December 2016, Benson Builder Pty Ltd incurred $85,000 servicing warranty claims. All of the warranty costs were in the form of labour costs. During the year ended 31 December 2016 , Benson Builder Pty Ltd's revenue from building contracts was $7 million. Warranty Liabilities are estimated as 1% of building revenue for the previous 12 months.

Required:

Prepare journal entries to record warranty claims during the period and end-of-period adjustments to the Warranty Provision account. (Hint: Credit Wages Payable for the labour costs).