The Employees of Able Company Have Worked the Last Two

question 6

Multiple Choice

The employees of Able Company have worked the last two weeks of Year 1,but the employees' salaries have not been paid or recorded as of December 31,Year 1.The adjusting entry that Able should make to accrue these unpaid salaries on December 31,Year 1 is:

• A)debit to Salaries Expense and credit to Cash.
• B)debit to Salaries Expense and credit to Salaries Payable.
• C)debit to Salaries Payable and credit to Salaries Expense.
• D)no entry is required until the employee is paid next period.

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Definitions:

Inventory Account

An account in financial accounting that tracks the value of a company's goods intended for sale, including raw materials, work-in-progress, and finished goods.

Legal Title

The formal right of ownership of property, which is recognized and protected by law.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Purchases Account

A ledger account in which the total amount of goods purchased during a period is recorded.