Suppose that on March $1,2025,$ Amazon Company hires a new employee who will start to work on March $6.$ The employee will be paid on the last day of each month. Should a journal entry be made on March $6?$ Why or why not?

Yes, the company is now obligated to pay the employee, thus that event must be recorded.

No$,$ hiring an employee is an important event; however it is not an economic event that should be recorded.

Yes, failure to record the event would cause the financial statements to be misleading.

No$,$ the company's financial position has been changed; however, the dollar amount of the transaction is not yet known.