The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $26,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?

Multiple Choice

• Salaries expense18,200Prepaid salaries7,800Salaries payable26,000
• Prepaid salaries7,800Salaries payable7,800
• Salaries expense18,200Salaries payable18,200
• Salaries expense5,200Salaries payable5,200