A business provides its employees with varying amounts of vacation per year, depending on the year's vacation pay is $76,800. length of employment. The estimated amount of the current Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. Veation Pay Expense Pay attention to the dates given. An employee's right to paid vacation time is an accrued expense adjusting entry. Recall that all adjusting entries affect at least one balance sheet account and one income statement account. Learning Objective 3. b. How is the vacation pay reported on the company's balance sheet? As a current liability, unless employees are allowed to accumulate their vacation pay for use in future years. When is this amount removed from the company's balance sheet? Check Hy Work Next 6:14 PM m3/27/2019