A company incurred $2,000 for utilities for the last month of Year 1. The company paid the bill during the first month of Year 2. Which of the following statements is correct?

A) The related $2,000 should be included in Utilities Expense on the balance sheet at the end Year 1.

B) The related $2,000 should be reported on the income statement for Year 1 as Utilities Expense.

C) Since it has not been paid, this utility bill would not be reported in the financial statements for Year 1.

D) The related $2,000 should be included in Accounts Receivable on the balance sheet at the Year 1.