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7 August, 22:14

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.

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  1. 7 August, 23:06
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    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 accrue 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

    Journal entry:

    Debit Credit

    Wages expense $2,880

    Wages Payable $2,880
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