The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

A) debit Vacation Pay Expense; credit Vacation Pay Payable
B) debit Vacation Pay Payable; credit Vacation Pay Expense
C) debit Salary Expense; credit Cash
D) debit Salary Expense; credit Salaries Payable

Accrued vacation privileges represent an expense that the company owes to its employees. Therefore, the journal entry should increase the company's liability and increase the expense account. Debiting Vacation Pay Expense and crediting Vacation Pay Payable reflects this. Option B would do the opposite and reduce the liability, which is incorrect. Options C and D are not related to vacation pay accrual and therefore not applicable.