Final answer:
The journal entry for Bikram's company receiving maintenance service with a payment of $300 due later would involve a debit to Maintenance Expense and a credit to Accounts Payable, reflecting the incurred expenses and the corresponding liability.
Step-by-step explanation:
The journal entry for the scenario where Bikram receives an equipment maintenance service and agrees to pay $300 later would be:
Debit: Maintenance Expense $300
Credit: Accounts Payable $300
This entry accurately reflects the accounting principle of accruals. The debit to Maintenance Expense recognizes the cost of the service, aligning with the increase in expenses on the debit side. Simultaneously, the credit to Accounts Payable acknowledges the liability incurred as the company has a pending payment obligation. Accounts Payable increases on the credit side, reflecting the promise to pay in the future. This entry aptly captures the financial impact of the maintenance service on the company's accounts, reflecting the expense and the corresponding liability for the pending payment. It adheres to sound accounting practices, ensuring accurate representation of the company's financial transactions in its records.