What journal entries are required to record $250,000 in salaries earned during the last week of July but paid in August?

The correct choice is to debit salary expense and credit salary payable. This journal entry accurately reflects the accrual accounting principles, which advocate for recognizing expenses when they are incurred, not necessarily when they are paid.

When employees earn their salaries, the company incurs an obligation to pay them, even if the payment is made in the following month. By debiting salary expense, you are acknowledging the expense for the work performed, which will impact the company's income statement for that period. Conversely, crediting salary payable creates a liability on the balance sheet, representing the company's obligation to pay its employees in the future.

This approach ensures that the financial statements for July correctly reflect the company’s obligations and expenses, maintaining the integrity of the financial reporting by matching expenses to the period in which they were incurred.