Certified Electronics Operates Five Days Per Week with a Daily

question 25

Multiple Choice

Certified Electronics operates five days per week with a daily payroll of $40,000. Employees are paid every Saturday for the work week just completed (Monday through Friday) . The last day of the month is Wednesday, May 31. The correct adjusting entry at May 31 is

• A)Wages Expense 40,000 Wages Payable 40,000
• B)Wages Payable 40,000 Cash 40,000
• C)Wages Expense 120,000 Cash 120,000
• D)Wages Expense 120,000 Wages Payable 120,000

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Definitions:

Exchange Theory

A theoretical framework positing that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Sales Interaction

The process and dynamics of communication between a salesperson and a prospective or current customer, aimed at promoting or selling a product or service.

Purchase Cycle

The sequence of stages that customers go through from recognizing a need, considering a purchase, making the purchase, and post-purchase behavior.

Value Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.