abby co. allows each employee two weeks of paid time off during each calendar year. since employees are working for 50 weeks, rather than 52 weeks, abby must accrue the paid time off during the 50 weeks that the employees work. the year-end adjusting entry is recorded as a credit to the ________- account.

A journal entry is also known as a double entry which records the transaction of a company in a given period of time. Journal entry is the first step of accounting, after posting journal entries of transactions, trial balance is made which helps out in preparing of income statement and balance sheet.

Employees are paid for the days off. In the case scenario given in the question employee at Abby Co. are given two weeks off for which they need to book an accounting entry. The accounting entry will have impact on holiday pay account Being credited and salary expense account to be debited. The entry will be recorded at the year end in accounts to record the expense that is salary paid to the employee for the weeks off.

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