While closing the month of October for your accrual basis client you notice that the G&A wages are half of what was expected, and you dig in to find out why. You ask the client why and learn that one of the owners didnt take half of their pay on their October 15th paycheck, however, the owner does expect to be paid. How should this be handled?

Expense what was paid on October 15th since they are modified-cash basis

Accrue the missing wages with a debit to Wages-G&A & accounts payable

Accrue the missing wages with a debit to Wages-G&A & credit due to owner

Expense the entire wages with a debit to Wages-G&A and credit the cash for the amount paid and the remaining balance credit to Payroll Liabilities