Sheridanprovides its employees two weeks of paid vacation per year. As of December 31,65employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $980, what is the required journal entry to accrue compensated absences?

Debit Salaries and Wages Expense for $127400and credit Salaries and Wages Payable for $127400.

No journal entry required.

Debit Salaries and Wages Expense for $63700and credit Salaries and Wages Payable for $63700.

Debit Salaries and Wages Payable for $126895and credit Salaries and Wages Expense for $126895.