Question

Record the payment of $1,750 for electricity used in the month of January.

a) Debit: Electricity Expense $1,750; Credit: Cash $1,750
b) Debit: Cash $1,750; Credit: Electricity Expense $1,750
c) Debit: Utilities Payable $1,750; Credit: Cash $1,750
d) Debit: Cash $1,750; Credit: Utilities Payable $1,750

Answer 1

The correct recording of the payment of $1,750 for electricity used in the month of January would be to debit Cash and credit Electricity Expense.

Step-by-step explanation:

The correct recording of the payment of $1,750 for electricity used in the month of January would be option b) Debit: Cash $1,750; Credit: Electricity Expense $1,750.

When recording an expense, such as the payment for electricity, we will increase (debit) the expense account, in this case, Electricity Expense, and decrease (credit) the Cash account.

Therefore, the correct journal entry would be:

Debit: Cash $1,750
Credit: Electricity Expense $1,750