Prepare journal entries to record provisions for warranties and reconstruct the provision for warranty account.

At the beginning of 2019, Davis Builders Pty Ltd had a credit balance of $130,000 in its warranty provision account. The warranty expense for the year was $42,000 and the balance of the warranty provision account at the end of the year after adjusting entries was $39,000.

a) calculate the cost of warranty claims during the period (it may be helpful to reconstruct the warranty provision account).

b) prepare journal entries to record the warranty claims during the period and end of period adjustments to the warranty provision account. Assume all warranty costs were for the replacement of parts from spare parts inventory.