Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a
A) Debit to Telephone Expense for $300.
B) Credit to Accounts Payable for $300.
C) Debit to Cash for $300.
D) Credit to Telephone Expense for $300.
E) Debit to Accounts Payable for $300.

Question

Quizplus · Accepted Answer

The correct entry is a debit to Telephone Expense for $300 to record the expense incurred, and a credit to Cash for $300 to reflect the payment made.

Rocky Industries Received Its Telephone Bill in the Amount of $300