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

Question

Quizplus · Accepted Answer

The payment of the telephone bill is an expense, so it should be recorded as a debit to Telephone Expense, reflecting the cost incurred.

Ralph Pine Consulting Received Its Telephone Bill in the Amount