The adjustment for wages earned, but not yet paid is
A) Debit Wages Expense, credit Cash.
B) Debit Accrued Wages, credit Wages Expense.
C) Debit Accrued Wages, credit Cash.
D) Debit Wages Expense, credit Accrued Wages.

Question

Quizplus · Accepted Answer

The adjustment for wages earned, but not yet paid is recorded by debiting Wages Expense and crediting Accrued Wages. This is because the Wages Expense account needs to be increased for the amount earned by employees but not yet paid, and Accrued Wages account needs to be credited to reflect the liability owed by the company for these unpaid wages.

The Adjustment for Wages Earned, but Not Yet Paid Is