A business pays weekly salaries of $25 000 on Friday for a five-day week ending on that day.The adjusting entry necessary at the end of the financial period ending on Wednesday is:

Question

Quizplus · Accepted Answer

The business pays weekly salaries on Friday for a five-day week ending on that day, which means that the salaries for Wednesday have not yet been included in the payment. Therefore, at the end of the financial period ending on Wednesday, an adjusting entry is necessary to record the salary expense for Wednesday and to accrue the amount as a liability in salaries payable. The correct entry is to debit Salary expense for $15,000 (the amount for Wednesday) and credit Salaries payable for $15,000. Therefore, choice B is the best answer.

A Business Pays Weekly Salaries of $25 000 on Friday