Dervish Ltd Has an Average Weekly Payroll of $700 000

Multiple Choice

Dervish Ltd has an average weekly payroll of $700 000.The employees are entitled to 2 weeks',non-vesting sick leave per annum.Past experience suggests that 66% of employees will take the full 2 weeks' sick leave and 15% will take 1 week's leave each year.The rest of the employees take no sick leave.What weekly entry would Dervish make in relation to sick leave?

A)
$$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Sick leave expense } & 1029000 & \\\hline \mathrm { Cr } & \text { Provision for sick leave } & & 1029000 \\\hline\end{array}$$
B) No weekly entry is required.
C)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Sick leave expense } & 567000 & \\\hline \mathrm { Cr } & \text { Sick leave payable } & & 567000 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Sick leave expense } & 19789 & \\\hline \mathrm { Cr } & \text { Provision for sick leave } & & 19789 \\\hline\end{array}$$