A company usually recognizes an increase in accrued expenses immediately as it occurs. 2) Ace Bonding Company purchased merchandise inventory on account. C. Expense account and a credit to cash. B. A credit to cash. Adjusting entries are Step 5 in the accounting cycle and an important part of accrual accounting. A credit to an asset. Show transcribed image text. A debit to an asset. 1) The adjusting entry required to record accrued expenses includes: A credit to liability. Adjusting Entries – Why Do We Need Adjusting Journal Entries? A debit to an asset. The adjusting entry required to record accrued expenses includes: A. Expense account and a credit to a prepaid account. The inventory costs $3,100 and is expected to sell for $5,200. A credit to cash. For this reason, we also call these obligations accrued expenses. Essential Points to Note about Accrued Expense Journal Entry. 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. An accountant records unpaid salaries as a liability and an expense because the company has incurred an expense. A set of accrual or deferral journal entries with the corresponding adjusting entry provides a complete picture of the transaction and its cash settlement. At the end of the accounting period, the company recognizes these obligations by preparing an adjusting entry including both a liability and an expense. D. Expense account and a credit to a liability account. Adjusting entries allow you to adjust income and expense … A credit to an asset. A credit to cash. A credit to cash. 44. The company estimates that $1,200 of the year-end receivables will not be collected. 3. See the answer. This preview shows page 86 - 89 out of 183 pages.. 44. C. 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. 1) The adjusting entry required to record accrued expenses includes: A credit to liability. Expense account Wrong. A debit to an asset. Balance sheet liability account Right! Expert Answer Question: The Adjusting Entry To Record Accrued Expenses Includes A This problem has been solved! B. 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. It is credited to accrued expenses on the liability side of the balance sheet. The adjusting entry required to record accrued expenses includes: A. 2.The journal to record an accrued expense includes a credit to which account? An adjusting entry to record an accrued expense involves a debit to a(n) A. Liabilty account and a credit to an expense account. 2) On December 31, 2016, the end of Larry's Used Cars' first year of operations, the accounts receivable was $53,600. B. D. A credit to liability. If an adjusting entry is not made to accrue expenses, then the balance sheet liabilities will be? 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