$$1,480,000.$ There was no carryover of vacation time earned in Year $2.$

Required

a$.$ Provide the entry for Ulta Inc. to $(1)$ accrue compensated absences on December $31$ of Year $1,$ and $(2)$ make payment of vacation days in Year $2.$ Disregard payroll taxes.

b$.$ Compute the total amount of salaries expense for Year $1$ and for Year $2.$

c$.$ How would the vacation time carried over from Year $1$ affect the December $31$ of Year $1$ balance sheet?

Balance Sheet, Dec. $31$

Year $1$

c$.$ Current liabilities