Perill Co.has a five-day workweek (Monday through Friday).Employees earn $650 per day.If the month ends on Wednesday, and wages will not be paid until Friday, how much wage expense should be accrued on Wednesday?
A) $650
B) $1,950
C) $3,250
D) $1,300

Question

Perill Co.has a five-day workweek (Monday through Friday).Employees earn $650 per day.If the month ends on Wednesday, and wages will not be paid until Friday, how much wage expense should be accrued on Wednesday?​
A) ​$650
B) ​$1,950
C) ​$3,250
D) ​$1,300

Quizplus · Accepted Answer

The correct answer is B) $1,950. Since the month ends on a Wednesday, the company needs to accrue wages for three days (Monday, Tuesday, and Wednesday) at $650 per day. Therefore, the total accrued wage expense is 3 days * $650/day = $1,950.

Perill CoHas a Five-Day Workweek (Monday Through Friday)