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Elodia [21]
3 years ago
8

On December 31, Wood Company receives a utility bill in the mail for $870. Wood Company intends to pay the bill in early January

of next year. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:
Social Studies
1 answer:
ehidna [41]3 years ago
8 0

Answer:Debit utility bill expenses account $860

Credit utility bill payable account $860

Explanation: wood company will recognize utility bill expense of $ 860 in the financial statements of the previous year the expenses was incurred even though it was paid in the next accounting period as it relates to the current period.

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