Bear Island Ltd has a weekly payroll of $300 000

Bear Island Ltd has a weekly payroll of $300 000. The employees receive entitlements

to two weeks' sick leave per year. The sick-leave entitlements are classified as non- vesting. Past experience, and experience within the industry, suggest that 60 per cent of employees will use their full two weeks' entitlement each year; 20 per cent of employees will take one week's sick leave each year; and 10 per cent of employees will take one day's sick leave each year.

REQUIRED

a) Calculate the expected annual sick-leave expense for Bear Island Ltd (on the basis of average salaries).

b) Provide the journal entries necessary to recognise the sick-leave entitlement expense as it accrues.