The reversing entry for Salaries is
A) debit Salaries Expense; credit Salaries Payable.
B) debit Salaries Payable; credit Income Summary.
C) debit Salaries Payable; credit Salaries Expense.
D) debit Salaries Expense; credit Cash.

Question

Quizplus · Accepted Answer

The reversing entry for Salaries is to debit Salaries Payable and credit Salaries Expense. This is because at the end of the accounting period, the company has incurred the expense but has not yet paid it out. By recording a reversing entry, the company can ensure that the same expense will not be recorded again in the next period when the payment is actually made.

The Reversing Entry for Salaries Is