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Accrued expense is an example of an accrual adjusting entry. It occurs when expense is incurred before cash is paid. Letamp;#39;s learn how to accrue salary expense. Assume Morrissey band members earn $10,000 per week. December 31 is on a Wednesday. Letamp;#39;s figure out how much salary needs to be accrued and then how to record the adjusting entry. If the band members make 10,000 per week, letamp;#39;s divide by five to get daily amount of $2000. Next, December 31st is a Wednesday, so that means we need to accrue three days of salary for a total of $6000. When we record an adjusting entry to accrue expense, we always debit an expense account and credit a liability. In this example we debit salaries expense and credit salaries payable for 6000 dollars.
