What is the correct accounting treatment for unpaid sales salaries at the close of the fiscal period?

The correct accounting treatment for unpaid sales salaries at the close of the fiscal period involves recognizing the obligation to pay these salaries in the future. In accounting, salaries that have been earned but not yet paid represent a liability for the company. This liability is recorded under salaries payable, which reflects the amount the company owes to its employees for work done but not yet compensated.

By crediting the salaries payable account, you increase the liability, indicating that there is an obligation to pay this amount in the future. This aligns with the accrual basis of accounting, where expenses are recognized in the accounting period in which they are incurred, regardless of when the payment is made. Therefore, recognizing unpaid sales salaries appropriately acknowledges the expense related to salaries for the period, while also reflecting the corresponding liability on the balance sheet.

The other options would not correctly represent this scenario. For instance, debiting the salaries account would not record the unpaid liability; instead, it would incorrectly imply that this amount has already been paid. Crediting the cash account would also be incorrect since it suggests that cash has been paid out for the salaries, which contradicts the fact that they are still unpaid. Finally, debiting accounts payable does not apply here as this account typically reflects amounts owed to