3. New average amount of accrued wages = ($130,000) -

(:2) (?I 1 ,\,

= $60,000

(Note: Fifty-two is the number of paydays in a year if wages are paid weekly;

24 is the number if wages are paid twice a month.)

Decrease in average accrued wages = $130,000 - $60,000

= $70,000 Cost = $70,000 X .09 = $6,300