Question 3

You are the accountant for Mon Inc., a manufacturer of automobiles.This year, Mon Inc. used (but has not yet paid for) $525,000 of natural gas to heat its head office. What would be the 2 accounts used in the journal entry for this purchase?

Debit ????

Credit ????

Options for debit and credit:

Accounts Payable Accounts Receivable Cash Cost Of Goods Sold Finished Goods Inventory Head Office Inventory Indirect Materials Used Manufacturing Overhead Raw Materials Inventory Sales Revenue Utilities Expense Work In Process Inventory