A company's five-day weekly payroll of $980 is paid on Fridays.Assume that the last day of the month falls on Wednesday.Which of the following is the required adjusting entry for the month end?

Question

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The company's five-day weekly payroll means that they pay their employees for the current week worked. Since the last day of the month falls on Wednesday, two days of work have not yet been paid for. Therefore, the company owes its employees for two days of work, which is $392 ($980/5 days *2 days). The adjusting entry should be to debit Salaries Expense for $392 (to recognize the expense) and credit Salaries Payable for $392 (to recognize the liability). So, Option B is the best choice.

A Company's Five-Day Weekly Payroll of $980 Is Paid on Fridays.Assume