The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

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The adjusting entry for accrued vacation pay typically includes a debit to an expense account (such as Salaries and Wages Expense) and a credit to a liability account (such as Accrued Vacation Pay), not directly to tax withholding liability accounts.

The Adjusting Entry to Record the Accrued Vacation Pay at the End