For many years a company has paid all employees with 1 to 10 years of service one month's wages as a Christmas bonus and employees with more than 10 years' service two months' wages. It is company policy to give 2-week paid vacations to those with 1 to 10 years' service and 4-week paid vacations to those with more than 10 years' service. What accounting procedures should be followed with respect to the bonus and vacation pay?
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