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 $800. The adjusting entry to record the accrued wages will include a:

Question

Quizplus · Accepted Answer

The employee is owed for four days of work, which is 4/5 of the weekly pay. The weekly pay is $800, so the accrued wages are 4/5 * $800 = $640. The adjusting entry should debit Salaries Expense for $640 to recognize the expense incurred during the period.

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