Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustment for accrued wages would be recorded in the work sheet as a:

Question

Quizplus · Accepted Answer

The correct adjustment for accrued wages would be a debit to wages expense for $750, which represents three days of wages ($250 per day for Monday, Tuesday, and Wednesday) that have been earned by employees but not yet paid by the end of the fiscal period. This records the expense in the period it was incurred, aligning with the matching principle.

Assume That Sophia Co