Claymont Company instituted a vacation and sick pay policy on January 1, 2018. Thirty employees, whose salaries averaged $100 per day, were covered under the plan. The policy allows each employee five days of sick pay and twelve days of vacation pay per year. The sick pay accumulates up to a ten-day maximum. Vacation pay accumulates without a maximum. The sick pay vests, but vacation pay does not. A total of 400 days of sick and vacation days were taken during 2019.

	Required:
	Prepare the December 31, 2019 year-end accrual for compensated absences.

CHART OF ACCOUNTSClaymont CompanyGeneral Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
222	Liability for Compensated Absences
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expense
910	Income Tax Expense