At December 31,the NBC Company owes an employee for four days of work that will not be paid until January 5th.The weekly rate of pay for a five-day workweek is $1,000.The adjusting entry to record the accrued wages will include a:

Question

Quizplus · Accepted Answer

The adjusting entry should recognize the expense incurred during the period. Since the employee worked four days, the expense is 4/5 of the weekly pay, which is $800. Therefore, debit Salaries Expense for $800.

At December 31,the NBC Company Owes an Employee for Four