Level 1

Employees and payroll

This answer does not make any sense, how can you have an expense for something that hasn't yet been paid without an offsetting credit to an accrual account?  ie. Debit Wage Expense, Credit Accrued Vacation Pay.  It only expenses the vacation pay when it is paid out to the employee.  The system keeps track of what is owed to the employee but does not make an entry for the amount of the vacation pay owing to the employee.