Total Payroll for a Given Week Is $12,000 $\begin{array}{l}\text { Estimated Liability for Vacation Pay }&840\\\text { Cash }&&840\end{array}$

Multiple Choice

Total payroll for a given week is $12,000.If 70 percent of the company's employees typically qualify to receive two weeks' paid vacation per year,assuming 50 working weeks,the entry to record the estimated liability for vacation pay for the week is:

A)
$\begin{array}{l}\text { Estimated Liability for Vacation Pay }&840\\\text { Cash }&&840\end{array}$

B)
$\begin{array}{l}\text { Vacation Pay Expense } &480\\\quad \text { Cash }&&480\end{array}$
C)
$\begin{array}{llr} \text {Vacation Pay Expense } & 336\\ \text {Estimated Liability for Vacation Pay } && 336\\\end{array}$

D)
$\begin{array}{llr} \text {Cash } &168\\ \text { Estimated Liability for Vacation Pay} &&168\\\end{array}$