Karl Company accrued wages of $7,350 that were earned by employees unpaid at the year-end. Assuming Karl uses reversing entries, which of the following entries correctly reverses the accrued wages at the beginning of the following year?

A. Debit Cash $7,350; credit Wages Expense $7,350.
B. Debit Wages Expense $7,350; credit Wages Payable $7,350.
C. Debit Wages Payable $7,350; credit Cash $7,350.
D. Debit Wages Expense $7,350; credit Cash $7,350.
E. Debit Wages Payable $7,350; credit Wages Expense $7,350.


Answer: E

Business

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