Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions: 16

Answer

The two accounts involved in the adjustment entry are: a) Liability (accounts payable) b) Expense

Work Step by Step

The adjusting entry will affect the accounts as follows:- 1. Expense - Debit 2. Accounts payable - Credit Note: We can also use expense payable account instead of accounts payable.
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