Question

A company received a bill for newspaper advertising services, $340. the bill will be paid in 10 days. how would the transaction be recorded today?

Answer 1

The transaction for the bill for newspaper advertising services will be recorded today as a debit to Advertising Expenses and a credit to Accounts Payable (Advertising Payable).

How is an accrued expense recorded?

An accrued expense refers to an incurred outgoing that the service has been enjoyed previously and payment is due later.

According to the matching principle and accrual concept of generally accepted accounting principles, all expenses incurred within a financial period must be recognized in that period whether cash has been exchanged or not.

Thus, the transaction for the bill for newspaper advertising services will be recorded today as a debit to Advertising Expenses and a credit to Accounts Payable (Advertising Payable).

Learn more about recording accrued expenses at brainly.com/question/14524895

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