Davis Corp.has three employees.Each earns $600 per week for a five-day workweek ending on Friday.This month the last day of the month falls on a Wednesday.The company should make which of the following adjusting entries?

Question

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The company needs to account for the wages earned by the employees for the three days (Monday to Wednesday) that have not yet been paid by the end of the month. Each employee earns $600 per week, which is $120 per day. For three employees over three days, the total is $1,080. Therefore, the company should debit Wages Expense and credit Wages Payable for $1,800.