Merando Industries employs a five-day workweek and a September 30 year-end.Normal weekly wages amount to $36000.If September 30 ends on a Wednesday what is the appropriate adjustment at fiscal year-end?

Question

Quizplus · Accepted Answer

The adjustment is to increase Salaries and Wages Expense by $21,600 and increase Salaries and Wages Payable by $21,600. This is because the company has incurred $21,600 of wages expense for the three days worked in the last week of September, but has not yet paid the employees for this work.

Merando Industries Employs a Five-Day Workweek and a September 30