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?

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?

Quizplus · Accepted Answer

The journal entry to record labor charges would involve increasing the labor expense account and decreasing cash or accounts payable, depending on whether the labor charges have already been paid or not. The correct journal entry is: Debit Labor Expense and Credit Cash (or Accounts Payable). Option A is the only one that shows an entry for this transaction.

Altec Designs Makes Fashion Clothing and Reports the Following Data