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When Holly Received Her Paycheck, She Realized That Her Employer

Question 106

Multiple Choice

When Holly received her paycheck, she realized that her employer made an error in computing her wages, and overpaid her by $2,600. So, Holly promptly returned the excess amount.
When the employer receives a check from her for the amount of the overpayment, which of the following journal entries will be made by the employer?


A) Debit Cash $2,600 and credit Wages Expense $2,600
B) Debit Wages Expense $2,600 and credit Cash $2,600
C) Debit Cash $2,600 and credit Wages Payable $2,600
D) Debit Wages Payable $2,600 and credit Wages Expense $2,600

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