Recording an expense I owe, but haven’t yet paid.
Let’s say I pay all my workers combined $10,000 for a five day week and the month ends on a Wednesday. I pay my workers $2000 a day ($10,000/2). By Wednesday I would owe my workers $6,000 (3 x $2,000). My accrued salary expense would be $6000 because I owe them the $6,000, but I haven’t yet paid it.
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