Answer: A. Telephone expense is debited $82; accounts payable is credited $82. Explanation: Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts (liabilities) have also increased by $82. An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82. Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.

Question

Answer: A. Telephone expense is debited $82; accounts payable is credited $82.   Explanation: Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts (liabilities) have also increased by $82.  An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82. Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.

Nolan · Answer

Explanation: Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts (liabilities) have also increased by $82.  An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82. Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.

Accounting Question: Telephone Bill Expense

Dr. Peabody recorded an $82 telephone bill that he will pay within thirty days. Which of the following statements is correct?

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