Question

Athens Company's salaried employees earn two weeks of vacation per year. The company estimated and must expense $6,600 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 Payable $6,600; credit Vacation Benefits Expense $6,600.
B.) Debit Vacation Benefits Payable $16,500; credit Vacation Benefits Expense $16,50
C.) Debit Vacation Benefits Expense $16,500; credit Vacation Benefits Payable 16,500.
D.) Debit Vacation Benefits Expense $6,600; credit Vacation Benefits Payable
E.) Debit Vacation Benefits Expense $17,160; credit Vacation Benefits Payable $17,160

Answer 1

Answer: Debit Vacation Benefits Expense $6,600; credit Vacation Benefits Payable

Explanation:

Based on the information given in the question, the journal entry will be:

Debit Vacation benefits expense $6600

Credit Vacation benefits payable $6600

Therefore, the correct option is D.