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Berwick Ltd has a weekly payroll of $200,000. As per the staff agreement employees have a maximum entitlement of two weeks sick leave per annum.

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Berwick Ltd has a weekly payroll of $200,000. As per the staff agreement employees have a maximum entitlement of two weeks sick leave per annum. This is non-vesting sick leave. The management of Berwick Ltd believe that past experience within the organisation, and the industry generally, suggests 30 per cent of employees will take their full entitlement each year and 10 per cent will take one week's sick leave each year. The balance of the employees are assumed to take no sick leave Provide the following: 1. What is the expected annual sick leave expense for Berwick Ltd? Show all your calculations 2. Provide the weekly journal entry for sick leave expense

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