Salary expense is $2,600 per day, Monday through Friday, and the business pays employees each Friday. If December 31 falls on a Tuesday, the adjusting entry to record accrued salaries would be to:
A)debit Salaries Payable, $2,600; credit Salaries Expense, $2,600.
B)debit Salaries Expense, $5,200; credit Salaries Payable, $5,200.
C)debit Salaries Expense, $2,600; credit Salaries Payable, $2,600.
D)debit Salaries Payable, $5,200; credit Salaries Expense, $5,200.

Question

Quizplus · Accepted Answer

Since December 31 falls on a Tuesday, two days of salaries (Monday and Tuesday) have been incurred but not yet paid, totaling $5,200 ($2,600 per day x 2 days). The correct adjusting entry is to debit Salaries Expense for $5,200 to recognize the expense and credit Salaries Payable for $5,200 to recognize the liability.

Salary Expense Is $2,600 Per Day, Monday Through Friday, and the Business