Ralph Pine Consulting received its telephone bill in the amount of $300,and immediately paid it.Which of the following general journal entries will Pine Consulting make to record this transaction?
A)Debit Telephone Expense,$300; Credit Cash,$300.
B)Debit Telephone Expense,$300; Credit Accounts Payable,$300.
C)Debit Cash,$300; Credit Telephone Expense,$300.
D)Debit Accounts Payable,$300; Credit Telephone Expense,$300.
E)Debit Prepaid Expense,$300; Credit Cash,$300.

Question

Quizplus · Accepted Answer

The correct journal entry to record the payment of a telephone bill involves debiting (increasing) Telephone Expense to recognize the expense and crediting (decreasing) Cash to reflect the payment made. This accurately reflects the decrease in cash due to the payment of the telephone bill and the recognition of the expense.

Ralph Pine Consulting Received Its Telephone Bill in the Amount