Woolworth's Co. offers a bonus to its employees based on the company's annual profit. The amount of the bonus for this year is estimated at $32,500 to be paid in January of the following year. The journal entry required on December 31 to record the bond is:

Select one:

a. Debit Unearned Bonuses $32,500; Credit Bonus Payable $32,500

b. Debit Employee Bonus Expense $32,500; Prepaid Employee Bonus credit $32,500

c. Debit Estimated Bonus Payable $32,500; Cash credit $32,500

d. Debit Employee Bonus Expense $32,500; Credit Bonus Payable $32,500

e. You do not have to make an entry in December because the bonus will be paid in January of the next year