The correct journal entry to record the payment of SUTA is:
A) debit SUTA Expense; credit Cash.
B) debit Cash; credit SUTA Expense.
C) debit Cash; credit SUTA Payable.
D) debit SUTA Payable; credit Cash.

Question

Quizplus · Accepted Answer

When paying SUTA (State Unemployment Tax Act) liabilities, the company decreases its liability (SUTA Payable) and its cash. This is reflected by debiting SUTA Payable and crediting Cash, indicating a reduction in both accounts.

The Correct Journal Entry to Record the Payment of SUTA