On December 31, 2020, salaries owed to employees total $5,650 and will be paid on January 4, 2021. The adjusting entry prepared on December 31, 2020, includes a:

Question

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The correct adjusting entry for accrued salaries at the end of an accounting period is a debit to Salary Expense for $5,650, recognizing the expense incurred during the period, and a credit to Salaries Payable, acknowledging the liability to pay this amount in the future.

On December 31, 2020, Salaries Owed to Employees Total $5,650