The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is:. a. debit Salary Expense; credit Cash

b. debit Salary Expense; credit Salaries Payable

c. debit Vacation Pay Expense; credit Vacation Pay Payable

d. debit Vacation Pay Payable; credit Vacation Pay Expense

C. debit Vacation Pay Expense; credit Vacation Pay Payable

Explanation:

In as much as the name implies, debit vacation pay expense of the said worker is moved to his/her credit vacation pay payable. And cases like this comes up when the said worker is about to go on a vacation. This vacation pay expense is been considered a liability because it causes depreciation in equity.

Therefore accrued vacation privileges of an employer are times in which a worker has to go on a free working period that in some cases can be a vacation which deals with a debit Vacation Pay Expense; credit Vacation Pay Payable by the end of the year.

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