At December 31, 2010, Patula Corporation has not yet received its December invoice for utilities.On December 31, 2010 it accrues an estimate of $10,000.On January 15, 2011 Patula receives the invoice in the amount of $11,000.Assuming the accrual had already been reversed, the entry on January 15, 2011 is
A)debit utilities expense and credit cash $11,000.
B)debit cash and credit utilities expense $11,000.
C)debit utilities expense and credit cash $1,000.
D)debit cash and credit utilities expense $1,000.

Question

Quizplus · Accepted Answer

The company needs to record the actual expense of $11,000 by debiting utilities expense and crediting cash for the payment.

At December 31, 2010, Patula Corporation Has Not Yet Received