Harrison,an employee of Safe Associates,Inc.,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $118,500 and thus subject to FICA.He is also subject to federal income tax at a rate of 18%.Harrison has a deduction of $320 for health insurance and $80 for United Way.Which of the following is included in the entry to record the disbursement of his net pay?

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The disbursement of Harrison's net pay will result in a credit to Cash since he is receiving payment, but there is no need to record a credit to Salaries and Wages Payable as this account is used to record amounts owed to employees but not yet paid. There is also no need to record a debit to United Way Payable since that was already deducted from gross pay before calculating net pay. The only remaining account that will be affected is FICA Taxes Payable since FICA taxes (which include Social Security and Medicare taxes) will be withheld from Harrison's gross pay.

Harrison,an Employee of Safe Associates,Inc