Sheridan Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 8 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 2019 2020 0 Sick Days Used by Each Employee 2019 2020 2019 2020 $8 $9 7 Sheridan Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 5760 5760 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 3456 UP 3456 Salaries and Wages Payable (To accrue the expense and liability for sick pay) 2304 Salaries and Wages Expense 2304 Cash (To record payment for compensated time when used by employees) 2020 Salaries and Wages Experise 6400 Salaries and Wages Payable 6400 (To accrue the expense and liability for vacations) Salaries and Wages Expense 3840 Salaries and Wages Payable 3840 (To accrue the expense and liability for sick pay) Salaries and Wages Expense 576 Salaries and Wages Payable 5184 Cash 5760 (To record vacation time paid) 128 Salaries and Wages Expense 3072 Salaries and Wages Payable 3200 Cash (To record sick leave paid)