Question

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimmingemployee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?a. Cash, debit; Wages Expense, creditb. Wages Payable, debit; Wages Expense, credit
c. Wages Expense, debit; Cash, creditd. Cash, debit; Wages Payable, credit

Answer 1

Answer:

a. Cash, debit; Wages Expense, credit

Explanation:

The journal entry when cash is received is shown below:

Cash A/c Dr XXXXX

      To Wages expense A/c XXXXX

(Being cash received is recorded)

Since the cash is received that increase the asset account so this particular account is debited and we credited the wages expense as it reduce the expenses account