the employees of custom clothes work monday through friday. every other friday the company issues payroll…

the employees of custom clothes work monday through friday. every other friday the company issues payroll checks totaling $32,000 (or $3,200 per weekday). the current pay period ends on friday, january 3. custom clothes is now preparing financial statements for the year ended december 31. what is the adjusting entry to record accrued salaries at the end of the year? multiple choice debit salaries expense and credit salaries payable for $6,400 debit salaries expense and credit salaries payable for $9,600 debit salaries payable and credit salaries expense for $22,400 debit salaries expense and credit salaries payable for $22,400

the employees of custom clothes work monday through friday. every other friday the company issues payroll checks totaling $32,000 (or $3,200 per weekday). the current pay period ends on friday, january 3. custom clothes is now preparing financial statements for the year ended december 31. what is the adjusting entry to record accrued salaries at the end of the year? multiple choice debit salaries expense and credit salaries payable for $6,400 debit salaries expense and credit salaries payable for $9,600 debit salaries payable and credit salaries expense for $22,400 debit salaries expense and credit salaries payable for $22,400

Answer

Explanation:

Step1: Determine number of days of accrued salaries

The pay - period ends on January 3, and we are preparing statements for the year ended December 31. So, there are 3 working days (Monday - Wednesday) of accrued salaries in December.

Step2: Calculate accrued salaries amount

The daily salary is $3,200 / 5 = $640 per day. For 3 days, the accrued salaries amount is $640×3 = $1,920 per day×3 = $5,600. When recording accrued salaries, we debit Salaries Expense (to recognize the expense) and credit Salaries Payable (to recognize the liability).

Answer:

Debit Salaries Expense and credit Salaries Payable for $5,600