A receptionist worked one month and was paid $3900 on the last day of the month. How does this transaction affect the accounting equation?
A)Add $3900 to Cash and add $3900 to Accounts Payable.
B)Add $3900 to Accounts Receivable and subtract $3900 from Cash.
C)Add $3900 to Salary Expense and subtract $3900 from Retained Earnings.
D)Subtract $3900 from Cash and subtract $3900 from Retained Earnings.

Question

Quizplus · Accepted Answer

The payment of salary decreases Cash by $3900 and also decreases Retained Earnings by $3900, reflecting the expense incurred.

A Receptionist Worked One Month and Was Paid $3900 on the Last