Question

Which of the following journal entries is correct when a company has incurred an expense for work performed but has not yet paid for?

Answer 1

Wages expense A/c Dr XXXXX

To Accrued expenses payable XXXXX

(Being accrued wages is recorded)

Step-by-step explanation:

The correct entry is shown below:

Wages expense A/c Dr XXXXX

To Accrued expenses payable XXXXX

(Being accrued wages is recorded)

Since the wages is an expense and the same is to be debited whereas the payment is due which is recorded as an accrued expense payable plus it is a liability account so it would be credited