A business enterprise pays weekly salaries of $20,000 every Friday for the five-day week ending on that day. If the fiscal period happens on a Thursday, an adjusting entry would be necessary. This adjusting entry would consist of?

A- Debit Salaries Expense, $4000 & Credit Salaries Payable, $4000
B- Debit Salaries Expense, $16,000 & Credit Salaries Payable, $16,000
C- Debit Salaries Payable, $4,000 & Credit Salaries Expense, $4,000
D- Debit Salaries Payable, $16,000 & Credit Salaries Expense, $16,000

Help,

Dell

B- Debit Salaries Expense, $16,000 & Credit Salaries Payable, $16,000

Because you have incurred 4 days (20,000 x 4/5) of labour that you must account for.

Thank you.

Dell