A company has a policy of paying salaries for contract labor on the 15th of the month following the labor services received. In December 2021, the company recorded $15,000 paid in salaries for labor services received in November 2021. In addition, labor services received in December 2021 were $12,000 and will be paid by the company on January 15, 2022. What adjusting entry will the company record on December 31, 2021?
A) Debit Salaries Expense and credit Salaries Payable for $27,000.
B) Debit Salaries Expense and credit Cash for $15,000.
C) Debit Salaries Expense and credit Salaries Payable for $12,000.
D) Debit Salaries Expense and credit Salaries Payable for $3,000.
Answer: C
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Accounting
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