Wages are $37,500 per week for a five-day workweek, ending on Friday. The last payday of the year was Friday, June 26. Which of the following is correct for the reversing entry on July 1?
A) credit Salaries Payable for $15,000
B) debit Salaries Payable for $37,500
C) debit Salaries Expense for $15,000
D) credit Salaries Expense for $15,000

Question

Quizplus · Accepted Answer

The reversing entry on July 1 should credit Salaries Payable for $15,000 to reverse the accrued liability for the three days (Monday to Wednesday) of the previous week that were unpaid by June 30.

Wages Are $37,500 Per Week for a Five-Day Workweek, Ending