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stepladder [879]
4 years ago
8

lack Duck Enterprises has a five-day work week and pays the warehouse staff $15 per hour for each eight-hour work day. The work

week runs from Monday through Friday. If the month ends on a Wednesday and eight employees worked each day, the adjusting entry for the accrued expense will:a. debit Wages Payable for $4,800. b. credit Wages Payable for $4,800. c. debit Wages Payable for $2,880.d. credit Wages Payable for $2,880.
Business
1 answer:
Inessa05 [86]4 years ago
5 0

Hi there!

Answer:

D. credit Wages Payable for $2,880.

Explanation:

-First we calculate the cost per employee per day

$15 per hour * 8 hours/day  = $120 per day per employee

-Then we calculate the daily cost in wages

8 employees x $120 = $960 per day

-Then we <em>accrue</em> wages until the end of the month (Monday, Tuesday and Wednesday)

Daily cost                                           $960

Days worked till the month ends       3

Accrued expense                             $2,880

<em><u>Journal entry: </u></em>

                                Debit        Credit

Wages expense     $2,880

Wages Payable                       $2,880

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