Glory Pte Ltd grants 14 days of annual leave to its employees and unused annual leaves can be carried forward to the following year. Employees will consume the carried forward annual leaves first before consuming the current year annual leaves. The entity's financial year ends on 31 December. At the start of the current financial year, the entity has an opening balance of $24,000 in its Provision for Short-term Paid Absences. The entity estimates that the average unused leave entitlement is three days per employee for the current financial year. There are 80 employees and the paid leave cost per day is $150. 

What is the journal entry to account for the expected cost of the unused leave entitlement for the current financial year?

Answer rating: 100% (QA)

To account for the expected cost of the unused leave entitlement for the current financial year we n... View the full answer