Our company is the primary contractor responsible for constructing a power plant for Top Energy Ltd. During the course of construction, defects in the construction of the power plant were brought to Management's attention. The estimated cost to fix these defects is $120m. We had previously recognised a provision for warranty of $60m on the project as part of project costs. We believe, however, that we can recover a substantial part of the costs from the subcontractors who performed some of the construction work. Negotiations with these subcontractors are ongoing, and to date, only two subcontractors have accepted liability. The amount of reimbursement that is considered virtually certain, therefore, is estimated to be $30m. Please advise what is the correct way to treat this transaction with explanations and appropriate journal entries