Seconds Best Retail Store receives and immediately pays a $3,500 utility bill from the City Gas & Electric Company.City Gas & Electric Company will record the receipt of this payment with a journal entry that includes a:
A) credit to Accounts Payable
B) credit to Utilities Expense.
C) debit to Utilities Revenue.
D) debit to Cash.

Question

Quizplus · Accepted Answer

The payment of the utility bill by Second Best Retail Store will result in a decrease in Cash. Therefore, City Gas & Electric Company will record a debit to Cash.

Seconds Best Retail Store Receives and Immediately Pays a $3,500