Question

Merando Industries employs a 5-day workweek and a September 30 year-end. Normal weekly wages amount to $38880. If September 30 ends on a Wednesday, what is the appropriate adjustment at fiscal year-end?

Answer 1

Explanation:

The appropriate adjustment entry is as follows

Salaries and wages expense A/c Dr  $23,328

            To Salaries and wages payable A/c  $23,328

(Being the salary and wages expense is recorded)

The computation is shown below:

= Weekly wages × number of days ÷ total number of days in a week

= $38,880 × 3 days ÷ 5 days

= $23,328