Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-
day workweek ending on the previous Friday. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:___________
A) Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400.
B) Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600.
C) Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000.
D) Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400.
E) Debit Salaries Expense, $5,400; credit Cash, $5,400.
