Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees' $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
A) Debit to Medical Insurance Payable $5,000.
B) Debit to Employee Retirement Program Payable $6,000.
C) Debit to Employee Benefits Expense $11,000.
D) Credit to Employee Benefits Expense $11,000.
E) Debit to Payroll Taxes Expense $11,000.
C) Debit to Employee Benefits Expense $11,000.
Explanation: Accrued Expenses = ($120,000 * 0.05) + $5,000 = $11,000
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