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Lila Harrison is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:

Respuesta :

Answer:

Debit to salary expense for $400.00

Explanation:

In the case when a company is preparing the profit and loss statement so they first have the gross salary

The net salary should be

= Gross salary - deductions - taxes

Now in order to record the gross pay we have to debit to the salary expense for $400 as it increased the expense and expense contains the normal debit balance

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