Monday, August 15, 2011

How are accrued expenses journalized for accounts payable? How would an accrued expenses account be used?

If an expense has been "incurred" but not paid for in cash, a debit would be made for the expense (for example, "utility expense"), and a credit would be made for "accounts payable" in the general journal. When the expense is actually paid for, accounts payable would be debited, and cash would be credited.

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