On December 31, 2012, employees who earn $500 per day have worked eight days and will be paid on January 6, 2013. The adjusting entry on December 31, 2012, includes a debit to Salaries Expense for $4,000.

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This statement is true as the adjusting entry on December 31, 2012, would include a debit to Salaries Expense for $4,000, representing the eight days of work by employees who earn $500 per day. This is because the accrual accounting system requires expenses to be recognized in the period they are incurred, even if payment is made in a later period.

On December 31, 2012, Employees Who Earn $500 Per Day