Problem: The employees of Fashion Backwards work a Monday through Friday workweek with no holidays. Every other Friday, the company pays its employees a total of $32,000. The next pay date will occur on Friday, January 3. Fashion Backwards is currently preparing its financial statements for the year-ended December 31. What adjusting entry is necessary to record accrued salaries at the end of December? a) Debit Salaries Expense $22,400; Debit Prepaid Salaries $9,600; Credit Salaries Payable $32,000 b) Debit Salaries Expense $6,400; Credit Salaries Payable $6,400 c) Debit Prepaid Salaries $9,600; Credit Salaries Payable $9,600 d) Debit Salaries Expense $22,400; Credit Salaries Payable $22,400

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The employees of Fashion Backwards work a Monday through Friday workweek with no holidays. Every other Friday, the company pays its employees a total of $32,000. The next pay date will occur on Friday, January 3. Fashion Backwards is currently preparing its financial statements for the year-ended December 31. What adjusting entry is necessary to record accrued salaries at the end of December?

a) Debit Salaries Expense $22,400; Debit Prepaid Salaries $9,600; Credit Salaries Payable $32,000
b) Debit Salaries Expense $6,400; Credit Salaries Payable $6,400
c) Debit Prepaid Salaries $9,600; Credit Salaries Payable $9,600
d) Debit Salaries Expense $22,400; Credit Salaries Payable $22,400

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