If at the end of the year the firm owes a balance for workers' compensation insurance,the adjusting entry includes a

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If the firm owes a balance for workers' compensation insurance at the end of the year, the adjusting entry should involve a debit to Workers' Compensation Insurance Expense, which will increase the expense account, and a credit to Workers' Compensation Insurance Payable, which will increase the liability account. Option A is incorrect since it suggests a debit to the liability account and a credit to the expense account. Option B is incorrect since it suggests a debit to the refund receivable account, which is not applicable in this scenario. Option D is incorrect since it suggests a debit to payroll taxes expense, which is not relevant to workers' compensation insurance.

If at the End of the Year the Firm Owes