Sanborn Company has 10 employees, who earn a total of $2800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:
A. Debit Salaries Expense, $5600; credit Salaries Payable, $5600.
B. Debit Salaries Expense, $14,000; credit Salaries Payable, $14,000.
C. Debit Salaries Expense, $8400; credit Cash, $8400.
D. Debit Salaries Payable, $8400; credit Salaries Expense, $8400.
E. Debit Salaries Expense, $8400; credit Salaries Payable, $8400.
Answer: E
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