When Correcting a Data Error in a Payroll Journal Entry

question 30

Multiple Choice

When correcting a data error in a payroll journal entry before posting you should -

• A)first open the payroll journal and enter the correct work
• B)remove the payroll entry from the edit menu
• C)select the incorrect field(s)and enter the correct data
• D)discard the payroll transaction by clicking the undo tool

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Definitions:

Aging of Accounts

A method used to estimate uncollectable debts by categorizing accounts receivables based on how long they have been outstanding.

Uncollectible Percentage

Estimate of the portion of accounts receivable that will not be collected, used in calculating bad debt expense.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of accounts receivable that a company does not expect to collect due to customers' inability to pay.

Aging of Accounts

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, often to identify potential collection issues.