Which of the following journal entries correctly records the receipt of a utility bill which will be paid for in later weeks?
A) Utilities payable
$ \quad $$ \quad $Utilities expense
B) Utilities expense
$ \quad $$ \quad $Utilities payable
C) Utilities expense
$ \quad $$ \quad $Retained earnings
D) Retained earnings
$ \quad $$ \quad $Utilities payable

Question

Which of the following journal entries correctly records the receipt of a utility bill which will be paid for in later weeks?
A) Utilities payable 
$ \quad $$ \quad $Utilities expense
B) Utilities expense
$ \quad $$ \quad $Utilities payable
C) Utilities expense
$ \quad $$ \quad $Retained earnings
D) Retained earnings
$ \quad $$ \quad $Utilities payable

Quizplus · Accepted Answer

The correct entry is to debit Utilities Expense to recognize the expense incurred and credit Utilities Payable to record the liability that will be settled in the future.

Which of the Following Journal Entries Correctly Records the Receipt \quad

Which of the Following Journal Entries Correctly Records the Receipt $\quad$