An electricity bill of $550 for June has not been recorded and will not be paid until next month. What adjusting entry is required as of 30 June?

Select one:

a. Debit electricity payable $550; Credit electricity expense $550

b. Debit electricity expense $550; Credit electricity payable $550

c. Debit electricity expense $550; Credit cash $550

d. Debit electricity payable $550; Credit cash $550