Data for an adjusting entry described as "accrued wages, $2,020" requires a
A) debit to Wages Expense and a credit to Wages Payable
B) debit to Wages Payable and a credit to Wages Expense
C) debit to Accounts Receivable and a credit to Wages Expense
D) debit to Dividends and a credit to Wages Payable

Question

Quizplus · Accepted Answer

Accrued wages are wages earned by employees, but not yet paid by the company. This means that an expense has been incurred by the company, but the amount is not yet recorded as a liability. Therefore, the adjusting entry would require a debit to Wages Expense (to recognize the expense) and a credit to Wages Payable (to recognize the liability).

Data for an Adjusting Entry Described as "Accrued Wages, $2,020