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 recording the wages expense incurred but not yet paid, which will be paid in the next month. This is an accrual entry, which is commonly used in accounting to match expenses with the revenues generated in that specific accounting period.

The Following Adjusting Journal Entry Found in the Journal Is