Tryst Inc. has a policy of accruing $1,500 for every employee as a vacation benefit. Sarah, an employee, took a vacation. Which of the following is the correct journal entry for the vacation benefit paid?

Question

Quizplus · Accepted Answer

The journal entry for vacation benefit paid would involve debiting vacation expense and crediting vacation payable. Option A and B do not have a credit to vacation payable account, while option D does not have a debit to vacation expense account. Hence, option C is the correct journal entry as it has both the required accounts debited and credited.

Tryst Inc Has a Policy of Accruing $1,500 for Every Employee