ABC Grocers Uses a Separate Checking Account to Pay Their

question 76

Multiple Choice

ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deductions were taken out, the net pay for the period was $790. The journal entry to record the issuance of payroll checks to their employees would include:

• A)a credit to Salaries Payable for $850
• B)a debit to Salaries Payable for $790
• C)a debit to Salaries Payable for $850
• D)a debit to Salaries Expense for $790

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Definitions:

Overpayment

The action of paying more than is due for a service or product, leading to a balance that may be refunded or credited.

Reconciling

The process of making one account or situation consistent with another, often involving the resolution of discrepancies.

Practice Records

Documentation kept by healthcare providers regarding the care and services provided to patients, often used for improving the quality of care.

Bank Statement

A bank statement is a summary of financial transactions that occurred over a given period on a bank account held by a person or business.