The payment of net wages involves a:
A) debit to bank and a credit to wages and salaries payable.
B) debit to wages and salaries payable and a credit to bank.
C) debit to wages and salaries and a credit to provision for wages and salaries.
D) debit to gross pay and a credit to net pay.

Question

Quizplus · Accepted Answer

When paying net wages, the company is paying employees their full pay minus any deductions (such as taxes and benefits). Therefore, the company will need to debit (reduce) the wages and salaries payable account for the full amount of pay owed to employees. They will then credit (reduce) their bank account for the net amount that is actually being paid to employees.

The Payment of Net Wages Involves A