Assume that the weekly payroll of In the Woods Camping Supplies is $300. 1 answer below »
Assume that the weekly payroll of In the Woods Camping Supplies is $300. December 31, end of the year, falls on Tuesday, and In the Woods will pay its employee on Friday for the full week. What adjusting entry will In the Woods make on Tuesday, December 31? (Use five days as a full work week.)
a.
Salary expense
120
Salary payable
120
b.
Salary payable
300
Salary expense
300
c.
Salary expense
180
Cash
180
d. No adjustment is needed because the company will pay the payroll on Friday.