Can you help me understand if there should be journal entries for this scenario on Dec 31, 2018, what they should be, and why?

Lil Tykes made the decision on January 2, 2018, to become self-insured and no longer carry collision, fire, and theft coverage on their delivery vehicles. For 2017 the actual losses for delivery expense were $40,000. The premium paid in 2016 for the coverage was $50,000. The controller believes that a self-insurance reserve should be set up by recording a debit of $10,000 to delivery expense and a credit of $10,000 to the self- insurance reserve