Data for an adjusting entry described as "accrued wages, $2,020" means to debit
A) Wages Expense and credit Wages Payable
B) Wages Payable and credit Wages Expense
C) Accounts Receivable and credit Wages Expense
D) Drawing and credit Wages Payable

Question

Quizplus · Accepted Answer

Accrued wages means that the company has incurred wages expense but has not yet paid those wages. Therefore, to record the adjusting entry, we need to debit Wages Expense to recognize the expense and credit Wages Payable to record the liability to pay the wages in the future.

Data for an Adjusting Entry Described as "Accrued Wages, $2,020