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NEG Ltd offers 12 weeks paid leave to employees after seven years of continuous service. On 1 July 2019, the balance in the Provision for
NEG Ltd offers 12 weeks paid leave to employees after seven years of continuous service. On 1 July 2019, the balance in the Provision for Long Service Leave was $225,000. During the year ended 30 June 2020, $50,000 was paid to employees who took long service leave. The estimated balance for Long Service Leave at 30 June 2020 is $270,000. Which of the following shows the correct journal entry? Date Account Details Debit Credit 30 June 2020 Long Service Leave Expense 270,000 Provision for Long Service Leave 270,000 Date Account Details Debit Credit 45,000 30 June 2020 Long Service Leave Expense Provision for Long Service Leave 45,000 Date Account Details Debit Credit 30 June 2020 Long Service Leave Expense 95,000 Provision for Long Service Leave 95,000 None of the above
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