Recording salaries paid to employees as a debit to accounts receivable and a credit to cash will cause:
A)accounts receivable to be understated.
B)total credits on the trial balance to be understated.
C)salary expense to be understated.
D)total debits on the trial balance to be overstated.

Question

Quizplus · Accepted Answer

Recording salaries as a debit to accounts receivable (instead of the correct account, salary expense) means the expense is not recognized, thus understating salary expense.

Recording Salaries Paid to Employees as a Debit to Accounts