The entry to adjust the accounts for salaries accrued at the end of the accounting period is
A) debit Salaries Payable; credit Cash
B) debit Cash; credit Salaries Payable
C) debit Salaries Payable; credit Salaries Expense
D) debit Salaries Expense; credit Salaries Payable

Question

Quizplus · Accepted Answer

Salaries accrued but not yet paid are recorded as a liability in the Salaries Payable account. To adjust the accounts for salaries accrued at the end of the accounting period, the Salaries Expense account is debited to recognize the expense for the period, and the Salaries Payable account is credited to increase the liability. Therefore, the correct entry is to debit Salaries Expense and credit Salaries Payable.

The Entry to Adjust the Accounts for Salaries Accrued at the End