Two employees worked one week and were paid salaries of $1600. The journal entry would:
A)debit Cash for $1600 and credit Salaries Payable for $1600.
B)debit Cash for $1600 and credit Salary Expense for $1600.
C)debit Accounts Payable for $1600 and credit Salary Payable for $1600.
D)debit Salary Expense for $1600 and credit Cash for $1600.

Question

Quizplus · Accepted Answer

The correct journal entry for paying salaries is to debit Salary Expense to recognize the expense incurred and credit Cash to reflect the outflow of cash.

Two Employees Worked One Week and Were Paid Salaries of $1600