Final answer:
The journal entry to record utility use in a factory would involve debiting the Factory Overhead and crediting the Factory Utilities Payable accounts to reflect the costs incurred and the liability created.
Step-by-step explanation:
The journal entry to record the use of utilities in a factory would typically include a debit to Factory Overhead and a credit to Factory Utilities Payable. When a company incurs utility expenses that are associated with manufacturing processes, these expenses are routinely recorded in the Factory Overhead account.
Factory Overhead is a general ledger account where indirect manufacturing costs like utilities are accumulated before being assigned to the cost of goods manufactured. At the same time, since the utilities are not usually paid for at the moment of consumption, a liability is recognized in the form of Factory Utilities Payable. Therefore, the correct answer to the question would be both option a) Debit to Factory Overhead and option d) Credit to Factory Utilities Payable.