Question
On November 30, 2017, FCM accrued $230 for that month's AT&T Internet and telephone bill. That ATT&T bill was paid on December 5. So the
On November 30, 2017, FCM accrued $230 for that month's AT&T Internet and telephone bill. That ATT&T bill was paid on December 5.
So the Instructions states that the bill was accrued in November so I'm assuming the accrual looked like this:
DR Utility Expense
CR Accounts Payable
So when I actually pay the bill in December it would look like this:
DR Accounts Payable
CR Cash
I'm not too sure if that makes sense or is correct but that's what I gather from accruing an expense, so please correct me if I am wrong in any way. There is no accrued expense in the chart of accounts so it cannot go to that account.
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