Final answer:
A credit decreases the Salaries Payable account, reducing the company's liability for unpaid wages.
Explanation:
Salaries Payable is the account that is decreased by a credit. When a credit is used, it reduces the amount owed for salaries or wages earned by employees but not yet paid by the company.
For example, if a company accrues $1,000 in salaries but hasn't paid them yet, it would credit the Salaries Payable account to decrease the liability.
This accounting entry impacts the balance sheet by decreasing the amount of current liabilities.
Learn more about Accounting for Salaries Payable here:
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