Expert Answer A credit to an asset. To follow this principle, adjusting entries are journal entries made at the end of an accounting period or at any time financial statements are to be prepared to bring about a proper matching of revenues and expenses. D. Expense account and a credit to a liability account. 2.The journal to record an accrued expense includes a credit to which account? Adjusting Entries – Why Do We Need Adjusting Journal Entries? A company usually recognizes an increase in accrued expenses immediately as it occurs. This preview shows page 86 - 89 out of 183 pages.. 44. B. Balance sheet liability account Right! Expense account and a credit to a prepaid account. 1) The adjusting entry required to record accrued expenses includes: A credit to liability. Adjusting entries allow you to adjust income and expense … Over at Sales Rep Company, for its financial statements to comply with the accrual method of accounting it needs to record the following accrual adjusting entry as of December 31 (assuming its billing will take place in early January): debit the asset account Commissions Receivable for $5,000; credit Commissions Revenues for $5,000. A debit to an asset. A debit to an asset. Essential Points to Note about Accrued Expense Journal Entry. Maintenance of so many accrued expenses every day, day after day, is a difficult job for an accountant. A credit to cash. The adjusting entry required to record accrued expenses includes: A. An accountant records unpaid salaries as a liability and an expense because the company has incurred an expense. A debit to an asset. C. A credit to an asset. Expense account Wrong. The inventory costs $3,100 and is expected to sell for $5,200. Show transcribed image text. B. A credit to cash. 1) The adjusting entry required to record accrued expenses includes: A credit to liability. For this reason, we also call these obligations accrued expenses. 2) Ace Bonding Company purchased merchandise inventory on account. D. A credit to liability. 44. A credit to an asset. C. Expense account and a credit to cash. Adjusting entries are required at the end of each fiscal period to align the revenues and expenses to the “right” period, in accord with the matching principle Matching Principle The matching principle is an accounting concept that dictates that companies report expenses at the same time as the revenues they are related to. If an adjusting entry is not made to accrue expenses, then the balance sheet liabilities will be? 2) On December 31, 2016, the end of Larry's Used Cars' first year of operations, the accounts receivable was $53,600. A credit to cash. The company estimates that $1,200 of the year-end receivables will not be collected. 3. The adjusting entry required to record accrued expenses includes: A. It is credited to accrued expenses on the liability side of the balance sheet. B. A debit to an asset. See the answer. Adjusting entries are Step 5 in the accounting cycle and an important part of accrual accounting. At the end of the accounting period, the company recognizes these obligations by preparing an adjusting entry including both a liability and an expense. A credit to cash. A set of accrual or deferral journal entries with the corresponding adjusting entry provides a complete picture of the transaction and its cash settlement. Question: The Adjusting Entry To Record Accrued Expenses Includes A This problem has been solved! An adjusting entry to record an accrued expense involves a debit to a(n) A. Liabilty account and a credit to an expense account. 1,200 of the balance sheet liabilities will be day, is a difficult job for accountant! 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