The amount debited to Wages Expense when a payroll is recorded is the
A)total gross earnings.
B)regular gross earnings.
C)earnings after taxes.
D)net earnings.

Question

Quizplus · Accepted Answer

The amount debited to Wages Expense when a payroll is recorded is the total gross earnings. This is because the Wages Expense account represents the total cost to the company of paying their employees for the period, including both regular pay and any bonuses, overtime pay, or other earnings. Taxes and other deductions are accounted for separately and do not affect the total amount debited to Wages Expense. Net earnings, on the other hand, represent the amount that each employee actually receives after taxes and other deductions have been taken out.

The Amount Debited to Wages Expense When a Payroll Is