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Question - Tim's Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim's Donuts' 10 employees had worked 15 hours, which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers, which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment that had been previously purchased for $2,650,000. The equipment is depreciated at $265,000 per year. Prior to adjustments, the company's trial balance showed $310,550 in the wage expense account and $110,375 of inventory. If Tim's Donuts makes the appropriate adjusting entry, how much will be reported for wages expense on the income statement for the year ending December 31, 2021?
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What do these results tell you? How will you use this information in planning and decision making
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