Altec Designs makes fashion clothing and reports the following data for the month of September:

What is the journal entry to record the total labor charges incurred during September ,which will be paid at a later date?

Question

Altec Designs makes fashion clothing and reports the following data for the month of September:

What is the journal entry to record the total labor charges incurred during September ,which will be paid at a later date?

Quizplus · Accepted Answer

The journal entry to record labor charges incurred but not yet paid is a debit to Labor Expense and a credit to Accrued Liabilities. Option A is correct as it debits Labor Expense and credits Accrued Liabilities. Option B credits Labor Expense, which is incorrect, and Option C and D debit Accrued Liabilities, which is also incorrect.

Altec Designs Makes Fashion Clothing and Reports the Following Data