Salaries and Wages Payable (Introductory)

[@m.n1493]

03/31 Salaries & wages Expense 960,000
Accrued Salaries & Wages 960,000
Am I correct if I use Accrued Salaries and Wages instead of Salaries and Wages payable?

[@TheAccountingProf]

Assuming Accrued Salaries and Wages is just an alternate name for the payable account, then yes, that would be totally appropriate! The process of recording the expense and payable at period-end is known as “accruing” the expense.

[@m.n1493]

oh I see! Thanks Prof.

[@sumankhadka9781]

@@TheAccountingProf and generally this type of expenses does not have invoice.If it was inventory case we would credit Accounts payable.Am i right Sir??

[@TheAccountingProf]

@@sumankhadka9781 Correct, accounts payable is used to track debts to suppliers, including inventory suppliers!

[@sumankhadka9781]

@@TheAccountingProf thanks for the reply Sir.