Gordy's Corp. has seven employees. Each earns $800 per week for a five day work week ending on Friday. This month, the last day of the month falls on a Thursday. The company should make an adjusting entry:

1.Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480.2.Debiting Wage Expense for $640 and crediting Wages Payable for $640.3.Crediting Wage Expense for $4,480 and debiting Wages Payable for $4,480.4.Crediting Wage Expense for $640 and debiting Wages Payable for $640.