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Ross & Co. pays all salaried employees on Monday for the 5-day work week ended the previous Friday. The last payroll recorded for the year ended December 31, year 2 was for the week ended December 25, year 2. The payroll for the week ended January 1, year 3 included regular weekly salaries of $80000 and vacation pay of $ 25000 for the vacation time earned in year 2 but not taken by December 31, year 2. Ross had an accrued liability of $20000 for vacation pay as on December 31, year 1. In its December 31, year 2 balance sheet, what amount should Ross report as accrued salary and vacation pay?
• $64000
• $69000
• $84000
• $89000
Answer says it’s $89,000 ($64,000 + $25,000). Why is the $20,000 accrued vacation pay disregarded?
FAR 85 June 2015
AUD 80 Nov 2015
REG 83 Nov 2015
BEC 79 Feb 2016
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