A company paid $125,000 for salaries for the month of June, of which $13,000 was for three employees who were on vacation. This company accrues vacation pay liability based on 6% of salaries earned. The journal entry to record the employer portion of the payroll would include a credit to

A :

Salaries Expense, $125,000.

B :

Vacation Pay Payable, $13,000.

C :

Salaries Payable, $112,000.

D :

Vacation Pay Payable, $6,720.