The adjusting entry to record an expense related to the use of a delivery van would involve which of the following?
A)A debit to Accumulated Depreciation
B)A credit to Delivery Van
C)A debit to Depreciation Expense
D)A debit to Retained Earnings

Question

Quizplus · Accepted Answer

The adjusting entry to record an expense related to the use of a delivery van would involve a debit to Depreciation Expense. This is because when a company uses a delivery van for business purposes, the van gradually loses value due to wear and tear, which is recognized as depreciation expense over time. Therefore, an adjusting entry is needed to recognize the depreciation expense for the period. Options A and B are related to the recording of the cost of the delivery van and its accumulated depreciation, but not to the recording of the expense related to its use. Option D is not applicable as it is not related to the recognition of an expense.

The Adjusting Entry to Record an Expense Related to the Use