The entry to record the payment of office salaries would be:
A)Debit Cash;Credit Accounts Receivable
B)Debit Cash;Credit Salaries Expense
C)Debit Salaries Expense;Credit Accounts Payable
D)Debit Salaries Expense;Credit Cash

Question

Quizplus · Accepted Answer

The payment of office salaries is an expense for the company, therefore it needs to be debited to Salaries Expense. At the same time, since the payment has been made in cash, it needs to be credited to Cash. Thus, the entry to record the payment of office salaries would be: Debit Salaries Expense; Credit Cash. Options A and C are incorrect as they involve either Accounts Receivable or Accounts Payable, which are not relevant in this scenario. Option B is incorrect as it involves crediting Salaries Expense, which would falsely increase the company's expenses.

The Entry to Record the Payment of Office Salaries Would