A company received a bill of $3,500 for utilities used in the current month.The journal entry to record this would include:
A)a debit to Accounts receivable for $3,500.
B)a credit to Accounts payable for $3,500.
C)a credit to Utilities expense.
D)No entry would be made until the utilities are paid.

Question

Quizplus · Accepted Answer

The correct entry would be to debit Utilities Expense for $3,500 and credit Accounts Payable for $3,500, as the company has incurred an expense and has an obligation to pay it.

A Company Received a Bill of $3,500 for Utilities Used