Mason Painting Services has a weekly payroll of $ 20,000. December 31 falls on Wednesday and Mason will pay its employees the following Monday (January 5) for the previous full week. Assume that Mason has a fiveminusday workweek and has an unadjusted balance in Salaries Expense of $ 770,000 at December 31. What amount should be debited to Salaries Expense on December 31?

$12,000

Explanation:

Given:

Payroll(7 days) = $20,000

Number of work day in week = 5 Days

Computation:

Per day Payroll = Weekly payroll / Number of work day in week

Per day Payroll = $20,000 / 5

Per day Payroll = $4,000

Deductible Days = Monday + Tuesday + Wednesday

Deductible Days = 3 days (work day in week)

So, Debited Amount  = Number of days x payroll amount per day

                                   = 3 x $4000

                                   = $12,000

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