ABC Company receives its December electric bill on December 28 but will not pay it until January 8. If ABC Company uses the accrual basis of accounting,

1) ABC Company must record a journal entry at year end that debits Utilities Expense and credits Utilities Payable

2) ABC Company must record a journal entry at year end that debits Utilities Expense and credits Cash

3) ABC Company must record a journal entry at year end that debits Utilities Payable and credits Utilities Expense

4) ABC Company must record a journal entry at year end that debits Utilities Payable and credits Cash 5)no adjustment is required at year end; the bill will be recorded when it is paid on Jan 8