Employees earn vacation pay at a rate of one day per month.The company estimated and must expense $1,500 of accrued vacation benefits for the year.Which of the following is the necessary year-end adjusting entry to record accrued vacation benefits?
A) Debit Vacation Benefits Expense $1,500; credit Prepaid Vacation $1,500.
B) Debit Vacation Benefits Expense $1,500; credit Vacation Benefits Payable $1,500.
C) Debit Payroll Tax Expense $1,500; credit Payroll Taxes Payable $1,500.
D) Debit Prepaid Vacation Benefits $1,500; credit Vacation Benefits Payable $1,500.
E) Debit Prepaid Benefits Payable $1,500; credit Vacation Benefits Expense $1,500.
Correct Answer:
Verified
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