Payroll Accounting 1 answer below »
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At the end of April, Hernandez Company had a balance of $37,910 in the vacation benefits payable account. During May, employees earned an additional $2,790 in vacation benefits, but some employees used vacation days that amounted to $2,050 of the vacation benefits. The $2,050 was charged to Wage Expense when it was paid in May. What adjusting entry would Hernandez Company make at the end of May to bring the vacation benefits payable account up to date? The answer is not $38,650.
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