During the month of October, Ford advertised on the Internet. Ford received the bill for $500 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is:
A) Accounts Payable, debit; Cash, credit
B) Advertising Expense, debit; Accounts Payable, credit
C) Advertising Expense, debit; Cash, credit
D) The journal entry is not made in November.

Question

Quizplus · Accepted Answer

The correct journal entry to record the payment of an expense previously incurred (and likely recorded as a payable) is to debit Accounts Payable, reducing the liability, and to credit Cash, reflecting the outflow of cash to settle the payable.

During the Month of October, Ford Advertised on the Internet