The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.
A)Record payment of wages.
B)Record wages paid last month.
C)Record wages paid in advance.
D)Record wages expense incurred and to be paid next month.

Question

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry. 
A)Record payment of wages. 
B)Record wages paid last month. 
C)Record wages paid in advance. 
D)Record wages expense incurred and to be paid next month.

Quizplus · Accepted Answer

The entry is adjusting for wages expense that has been incurred but not yet paid at the end of the accounting period. This is reflected in the accrual accounting method, which recognizes expenses when they are incurred, not when they are paid.

The Following Adjusting Journal Entry Found in the Journal Is