Question

​Sunset, Inc. has a policy of accruing $2,200 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? O A. Vacation Benefits Payable OB. Vacation Benefits Expense 1,900 Cash 1,900 1,900 Cash 1,900 C. Vacation Benefits Expense 1,583 Vacation Benefits Payable 1,583 O D. Vacation Benefits Payable 1,583 Vacation Benefits Expense 1,583

Answer 1

Step-by-step explanation:

The correct journal entry is shown below:

Vacation benefits payable Dr A/c $2,200

To Cash A/c $2,200

(Being vacation benefit​ is paid for cash)

Before passing this entry, another entry is passed which is shown below:

Vacation benefit expense A/c Dr

To Vacation benefits payable A/c

(Being expense is recorded)

Since we have to record the entry for vacation benefit paid. So, we credited the cash account and debited the Vacation benefits payable account

This is the answer but the same is not provided in the given options