Buffalo Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Actual Hourly Wage Rate						Vacation Days Used by Each Employee				Sick Days Used by Each Employee
2019			2020			2019		2020		2019		2020
$15			$18			0		9		4		5

Buffalo Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.

Year in Which Vacation Time Was Earned		Projected Future Pay Rates Used to Accrue Vacation Pay
2019		$13.00
2020		15.50

Your answer is partially correct. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required select "Mo Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered Do notIndent manually Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 10800 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 6480 Salaries and Wages Payable 6480 (To record sick leave paid) Salaries and Wages Expense 3840 Cash (To record Vacation time paid) 2020 Salaries and Wages Expense TJO DO CO 1000 m III DI IN ON IN 12960 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 7776 Salaries and Wages Payable (To record sick leave paid) Salaries and Wages Expense 1080 Salaries and Wages Payable 5400 Cash (To record vacation time paid)