Journal Entry for Utility Expense
Callie owns a floral business and receives an electricity bill for $290. How should her accountant record this transaction?
A
A debit of $200 to increase accounts payable and a credit of $90 to increase accounts receivable.
B
A debit of $290 to increase an income account and a credit of $290 to increase accounts payable.
C
A debit of $290 to increase accounts payable and a credit of $290 to increase a liability account.
D
A debit of $290 to increase an expense account and a credit of $290 to increase a liability account.
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