Lila Harrison's is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:
A)a credit to Salaries Payable for $400.00
B)a debit to Salaries Payable for $319.40
C)a debit to Salaries Expense for $319.40
D)a debit to Salaries Expense for $400.00

Question

Quizplus · Accepted Answer

The gross pay is recorded as a debit to Salaries Expense for the full amount of $400.00 before deductions.

Lila Harrison's Is the Sole Employee of ABC Grocers