Question

A company received a bill of $3,500 for utilities used in the current month. The journal entry to record this event: A. is not required; no journal entry should be prepared until the utilities bill is paid. B. will include a credit to Accounts Payable for $3,500. C. will include a credit to Utilities Expense. D. will include a debit to Accounts Receivable for $3,500.

Answer 1

Answer:

B. will include a credit to Accounts Payable for $3,500.

Explanation:

The journal entry to record Utilities bill for current month:

Account details           Debit    Credit

Utilities expense          $3,500

  Accounts Payable                   $3,500