When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.

Question

Quizplus · Accepted Answer

This is correct, as the withheld union dues are a liability for the employer until they are turned over to the union. When the employer turns over the dues to the union, the liability account is debited, indicating that the obligation has been fulfilled, and the cash account is credited, representing the payment made.

When Withheld Union Dues Are Turned Over to the Union