Danish Ltd Has an Average Weekly Payroll of $200 000

Danish Ltd has an average weekly payroll of $200 000.The employees are entitled to 2 weeks',non-vesting sick leave per annum.Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year.The rest of the employees take no sick leave.In the current week an employee with a weekly salary of $600 has been off sick for the first time this year.The employee took 2 days off out of her normal 5-day working week.Assuming that a weekly entry has been made to record the accumulated liability for sick leave and that PAYG tax is deducted at 30%,what would the entry be to record the employee's weekly salary (round amounts to the nearest dollar) ?

A)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Sick leave expense } & 240 & \\\hline \mathrm { Dr } & \text { PAYG tax } & 72 & \\\hline \mathrm { Cr } & \text { Provision for sick leave } & & 312 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Provision for sick leave } & 240 & \\\hline \mathrm { Dr } & \text { Salaries and wages } & 360 & \\\hline \mathrm { Cr } & \text { PAYG tax payable } & & 180 \\\hline \mathrm { Cr } & \text { Cash } & & 420 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Sick leave expense } & 171 & \\\hline \mathrm { Dr } & \text { Salaries and wages } & 429 & \\\hline \mathrm { Cr } & \text { PAYG tax payable } & & 142 \\\hline \mathrm { Cr } & \text { Cash } & & 458 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Salaries and wages } & 360 & \\\hline \mathrm { Dr } & \text { PAYG tax deduction } & 108 & \\\hline \mathrm { Cr } & \text { Cash } & & 468 \\\hline\end{array}$$

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