LOT E9.8 Prepare entries to record provisions for warranties. Olden Motor Vehicles Ltd offers a 12-month warranty for the sale of used motor vehicles. On I July 2018, there was a credit balance of $70000 in its warranty provision account. During the year ended 30 June 2019, Olden Motor Vehicles incurred $65000 in warranty costs, of which S30000 was in the form of inventory and $35 000 was for labour costs. At 30 June 2019, Olden Motor Vehicles estimated its liability for unexpired warranty contracts as $75000. Required (a) Prepare journal entries to record warranty claims during the period and end-of-period adjust- ments to the warranty provision account. (Hint: Credit wages payable for the labour costs.) (b) Why do entities offer a warranty