The Correct Adjusting Entry for Accrued and Unpaid Employee Salaries

question 179

Multiple Choice

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

• A) debit Salary Expense, $9,000; credit Cash, $9,000
• B) debit Salary Expense, $9,000; credit Fees Earned, $9,000
• C) debit Salary Expense, $9,000; credit Salaries Payable, $9,000
• D) debit Salary Expense, $9,000; credit Prepaid Salary, $9,000
• E) debit Salaries Payable, $9,000; credit Salary Expense $9,000

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Definitions:

Demand-oriented

Pricing strategy or manufacturing approach that is guided by the level of demand from consumers or market conditions.

Price Lining

Setting the price of a line of products at a number of different specific pricing points.

Target Pricing

Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.

Cost-oriented

A pricing strategy where the price of a product or service is determined based on its production cost plus a markup.