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Accrued expense is an example of an accrual adjusting entry, which is incurred before cash is paid. To accrue salary expense for Morrissey band members earning $10,000 per week, divide by five to get a daily amount of $2000. With December 31 on a Wednesday, three days of salary need to be accrued for a total of $6000. When recording adjusting entries, debit an expense account and credit a liability - debit salaries expense and credit salaries payable for $6000.
