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 - Page 200: 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.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.