When Honest Abe Received His Paycheck, He Realized That His

Multiple Choice

When Honest Abe received his paycheck, he realized that his employer made an error in computing his wages, and overpaid him by $1,300. So he promptly returned the excess amount.
When the employer receives a check from Abe for the amount of the overpayment, what is the effect of transaction to the employer?

A) Increase Cash and decrease Wages Expense
B) Increase Wages Expense and decrease Cash
C) Increase Cash and Increase Wages Payable
D) Decrease Wages Payable and decrease Wages Expense