Bill Company paid a previously unrecorded utility bill of $1,000 on January 31st for the month of January. Which of the following is included in the journal entry on January 31st?

Group of answer choices

A DEBIT Utility Payable $1,000

A DEBIT Utility Expense $1,000

A CREDIT Prepaid Utility Expense $1,000

A CREDIT Utility Expense $1,000

A DEBIT Prepaid Utility Expense $1,000

A CREDIT Utility Payable $1,000

A DEBIT Utility Expense $1,000

Explanation:

Utilities are expenses to a business. The unrecorded utility bill increases the amount of business expenses. As per the accounting principles, an increase in expenses is debited. The utility expenses account will be debited by $1000.

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