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Wattle Ltd has 120 employees who each earn a gross wage of $330 per day. In an attempt to reduce absenteeism, the company introduced a

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Wattle Ltd has 120 employees who each earn a gross wage of $330 per day. In an attempt to reduce absenteeism, the company introduced a new workplace agreement providing all employees with entitlement to 5 days of non-vesting, accumulating sick leave per annum, effective from 1 July 2020. Under the previous workplace agreement, all sick leave was non-cumulative. During the year ended 30 June 2020, 250 days of paid sick leave were taken by employees. It is estimated that 60% of unused sick leave will be taken during the year ended 30 June 2021 and that 40% will not be taken at all. Required Calculate below the estimate of the Provision for sick leave as at 30 June 2021 and prepare the journal entry to record the estimate at 30 June 2021

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