Accrued vacation pay Don Pedro Mexican Restaurants, Inc., has a two-week paid yacation plan. salaries and wages average $400,000. Because of high turnover, the firm estimates Monthly that only 30% of the employees will qualify for this fringe benefit. plain the proper accounting treatment for the vacation pay b. Prepare the journal entry for March that reflects the proper treatment c. P repare a journal entry to record the disbursement of s7,500 to employees who took their vacations in August