On 12/31/12, as part of the year-end adjusting journal entries, the Strickland Company accrues two day's wages of $400 ($200 per day). The proper 12/31/12 closing entries are made. On 1/1/13, Strickland makes the reversing entry. Strickland pays the weekly payroll of $1,000 on 1/3/13. The balance in the Wage Expense account after the 1/3/13 journal entry will be:

Select one:

a.

$0

b.

$400

c.

$600

d.

$1,000

e.

$1,200