When remitting EI, the entry would be
A) debit EI Expense, credit Cash.
B) debit Cash, credit EI Expense.
C) debit Cash, credit EI Payable.
D) debit EI Payable, credit Cash.

Question

Quizplus · Accepted Answer

When remitting Employment Insurance (EI), the company is paying out the liability it has accrued for EI. Therefore, the entry involves decreasing the liability (debit EI Payable) and decreasing cash (credit Cash) to reflect the payment made.

When Remitting EI, the Entry Would Be