The accounting transaction to record payment of the heating bill would include a:

Question

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Payment of a heating bill would be recorded with a debit to Utilities Expense, as this is an expense that has been incurred by the business. The payment is made with cash, so there would also be a credit to the Cash account. There is no involvement of Accounts Payable or Accounts Receivable in this transaction, as no credit has been extended to or received from another party related to this expense.

The Accounting Transaction to Record Payment of the Heating Bill