Which of the following statements is correct regarding the adjustment for salaries and wages accrued but not paid at the end of the accounting period?
A)Salaries and Wages Payable will decrease by the amount of the unpaid wages.
B)Salaries and Wages Expense will be recorded as a credit for the amount of the unpaid salaries and wages.
C)Salaries and Wages Payable will be recorded as a debit for the amount of the unpaid salaries and wages.
D)Salaries and Wages Expense will increase by the amount of the unpaid salaries and wages.

Question

Quizplus · Accepted Answer

Although the amount due to employees will not be paid until after the accounting period ends,the expense relates to work done (and revenues generated)during the accounting period,so the expense recognition principle ("matching")requires an adjustment be made to accrue the wages incurred and owed by the company.Salaries and Wages Expense will increase (with a debit)and Salaries and Wages Payable,a liability,will increase (with a credit).

Which of the Following Statements Is Correct Regarding the Adjustment