Crest Co.receives and immediately pays a $5,250 utility bill from the Public Service Utility Company.Public Service Utility Company will record the receipt of this payment with a journal entry that includes a:
A)credit to Accounts Payable.
B)debit to Utilities Expense.
C)debit to Utilities Revenue.
D)debit to Cash.

Question

Quizplus · Accepted Answer

Since Public Service Utility provided the utilities services,the journal entry will include a debit to Cash and a credit to Utilities Revenue.

Crest Coreceives and Immediately Pays a $5,250 Utility Bill from the the Public