Which of the following journal entries correctly records the receipt of a utility bill,which will be paid for in later weeks?

Question

Quizplus · Accepted Answer

Option B correctly records the receipt of a utility bill and the liability created for it. The utility expense is debited as the company has incurred the cost, and the accounts payable is credited to record the liability. Options A, C, and D do not correctly record the liability and only debit the utility expense account.

Which of the Following Journal Entries Correctly Records the Receipt