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Logan Company pays its employees at the end of the day Friday for work done during that 5-day work week. In the current year, December 31 occurred on a Wednesday, so 3 days of wages were earned but not paid by the end of day on December 31. Which debit or credit is correctly included in the adjusting journal entry necessary on December 31 to record the wages that Logan Company has not yet paid?

DEBIT to Wages Payable
CREDIT to Wages Payable
CREDIT to Retained Earnings
CREDIT to Wages Expense

Answer 1

The correct debit in the adjusting journal entry necessary on December 31 to record the wages that Logan Company has not yet paid is DEBIT to Wages Payable.

Step-by-step explanation:

The correct debit in the adjusting journal entry necessary on December 31 to record the wages that Logan Company has not yet paid is DEBIT to Wages Payable. This is because the company owes wages to its employees for work done during the 5-day work week, but the payment has not been made by the end of day on December 31. Wages Payable is a liability account that represents the amount owed to employees for their work.