Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do you know when the transaction is recorded as a debited wage expense account, or a credit on the cash account? On June 24,

How do you know when the transaction is recorded as a debited wage expense account, or a credit on the cash account?

"On June 24, Costco paid wages for work performed during the preceding week in the amount of $6,700."

If I think about it, you use cash to pay employees. So, why can't you credit $6,700 to the cash account? I'm very confused about the wage expense account, so if someone could please explain that to me, that would be awesome. Thanks a lot.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions