Question
we use $1000 of electricity in October and $ 1000 in November, but pay the full bill 31stDecember of $2000. On 31stOctober: Dr. Utilities Expense............1000(SE-)
we use $1000 of electricity in October and $ 1000 in November, but pay the full bill 31stDecember of $2000.
On 31stOctober:
Dr. Utilities Expense............1000(SE-)
Cr. Accrued Expenses...........1000(L+)
Why are we debiting the utilities expense but not debiting something like electricity in the asset (e.g Dr. electricity ........1000(A+))
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
4th edition
978-0133428469, 013342846X, 133428370, 978-0133428377
