Bear LTD has weekly payroll of $300,000 . The employee receive entitlement to two week's sick leave per year ( non vesting ) . Past experience , and experience within the industry , suggest that 60 per cent employees use their full two weeks's entitlement each year, 20% of employees will take one week sick leave each year, 10 % of employee will take one day's sick leave each year.

Require :

a, Calculate the expected annual sick leace expense for Bear LTD ( on the basis of average salaries )

b, Provide the journal entries necessary to recognise the sick leave entitlement expense as it accrues.