Assume that best buy made a december 31 adjusting entry to debit salaries expense and credit salaries payable for $4,200 for one of its departments. on january 2, best buy paid the weekly payroll of $7,000. prepare best buy's (a) january 1 reversing entry; (b) january 2 entry (assuming the reversing entry was prepared); and (c) january 2 entry (assuming the reversing entry was not prepared).

salaries payable              4,200 debit

         salaries expense                    4,200 credit

reversing entry

salaries expense            7,000 debit

         cash                                        7,000 credit

payment of wages7wtih reserving entry

salaries payable               4,200 debit

salaries expense            2,800 debit

         cash                                        7,000 credit

payment without reversingentry

Explanation:

(A) the reversal entry will be like the adjusting entry done backwards.

(B) when the journal entry is made, then we recognize expense for the full amount. leaving a balance for the expense for the current period:

wages expense

debit       credit

              4,200

7,000

2,800 debit balance

(C) if no reversing entry was made, then we use the payable and recognize expense for the period

7,000 - 4,200 = 2,800 expense

answer; according to the ( irs );