The Journal Entry to Record the Payment of a Monthly

question 47

Multiple Choice

The journal entry to record the payment of a monthly utility bill would include

• A) a debit to Utilities Expense and a credit to Capital.
• B) a debit to Capital and a credit to Cash.
• C) a debit to Utilities Expense and a credit to Cash.
• D) a debit to Utilities Expense and a credit to Accounts Payable.

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Definitions:

Freight-In

The cost associated with transporting goods into a business, which is often added to the cost of inventory.

Cost of Goods Sold

The direct financial outlays related to producing the products that a company sells.

Purchase Returns

Goods returned to the supplier due to defects, damage, or dissatisfaction, resulting in a refund or credit to the buyer.

Freight-In

Costs associated with the shipping of raw materials or goods into a production facility or warehouse, typically included in the inventory cost.