Jay's Limo Services, Inc $\begin{array}{|c|c|c|}\hline \text { Salaries Expense } & 300 & \\\hline \text { Accounts Payable } & & 300\\\hline\end{array}$

question 72

Multiple Choice

Jay's Limo Services, Inc. paid $300 cash to employees for work performed in the current period. Which of the following general journal entries will Jay's Limo Services, Inc. make to record this transaction?

• A) \(\begin{array}{|c|c|c|}
• \hline \text { Salaries Expense } & 300 & \\
• \hline \text { Accounts Payable } & & 300\\
• \hline
• \end{array}\)
• B) \(\begin{array}{|c|r|r|}
• \hline \text { Cash } & 300 & \\
• \hline \text { Salaries Expense } & & 300 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Salaries Expense } & 300 & \\
• \hline \text { Dividends } & & 300 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Salaries Payable } & 300 & \\
• \hline \text { Salaries Expense } & & 300 \\
• \hline
• \end{array}\)
• E) \(\begin{array}{|c|r|r|}
• \hline \text { Salaries Expense } & 300 & \\
• \hline \text { Cash } & & 300 \\
• \hline
• \end{array}\)

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Definitions:

FIFO Method

An inventory valuation method that assumes goods are sold in the order they were acquired, standing for "First In, First Out."

Inventory Costs

The costs incurred to acquire, hold, and process inventory, including purchase prices, shipping, handling, and storage.

Gas Grills

Outdoor cooking appliances powered by gas fuel, designed for grilling food.

LIFO Periodic

A method of inventory valuation where the last items placed in inventory are the first ones to be recorded as sold, used in periodic inventory accounting systems.