Belfort Entity's (BE) 20 employees are each entitled to seven paid sick days for each year they work. Unused sick leave may be carried forward for one calendar year and must be used first before using the current year's sick days. At December 31, 20X7, BE's employees have an average of four unused days paid sick leave per employee. BE does not expect a future saving due to unused sick days lapsing. Based on past experience, BE estimates that 10 employees will take no more than seven days of paid sick leave in 20X8 and that the remaining 10 employees will take an average of nine days each. Current wage rate per working day is $600 and the average increase in wages for 20X8 is 10%. What is BE's journal entry to recognize its obligation?

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The Answer of Belfort Entity's (BE) 20 employees are each entitled to seven paid sick days for each year they work. Unused sick leave may be carried forward for one calendar year and must be used first before using the current year's sick days. At December 31, 20X7, BE's employees have an average of four unused days paid sick leave per employee. BE does not expect a future saving due to unused sick days lapsing. Based on past experience, BE estimates that 10 employees will take no more than seven days of paid sick leave in 20X8 and that the remaining 10 employees will take an average of nine days each. Current wage rate per working day is $600 and the average increase in wages for 20X8 is 10%. What is BE's journal entry to recognize its obligation?

Belfort Entity's (BE) 20 Employees Are Each Entitled to Seven