An Overpayment Error Was Discovered in Computing and Paying the Wages

question 204

Multiple Choice

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

• A) Cash, debit; Wages Expense, credit
• B) Wages Payable, debit; Wages Expense, credit
• C) Wages Expense, debit; Cash, credit
• D) Cash, debit; Wages Payable, credit

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Definitions:

Cumulative

Refers to the total amount accumulated over a period of time or the aggregate of elements collected.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.

Cost of Goods Sold

The total cost of manufacturing or acquiring the products that were sold during a given period.

Operating Expenses

Expenses incurred in the course of regular business operations, such as wages, rent, and utilities.