Making journal entries to account for accrued commission
Hello, I am new to Quickbooks with only two accounting courses under my belt. I do the books for a company that pays out both commission and payroll to employees, depending on their positions. When I cut the checks to the commissioned employees I write the check out manually and enter the check in the bank account register and categorize it in the "Commisssion/1099" account. My question is in regards to the accrual of commission.... What accounts should I debit and credit to make a journal entry at the end of the month, when I prepare financial statements to account for the liability of the monthly commission being paid out in 1-2 weeks time (they are paid the second Friday of the month for the month prior)? I thought that I should debit Payroll Expenses and Credit Accrued Payroll , butI think that may be wrong because when i look at my profit and loss under payroll expenses it is adding this dollar amount entered into that entry into that (Payroll Expenses) figure. It makes it look like I am paying out double?. Please help!!!