Learn about how to pay your bill, how to set up auto payment, how to cancel account and contact customer support for when a company receives a utility bill but will not pay it right away, it should by using the official links that we have provided below.
Accounting Final Flashcards | Quizlet
https://quizlet.com/82102123/accounting-final-flash-cards/
When a company receives a utility bill but will not pay it right away , it should : A. make no entry until the bill is paid . B. debit Utilities Expense and …
Solved When a company receives a utility bill but will not …
View the full answer. Transcribed image text: When a company receives a utility bill but will not pay it right away, it should O debit Accounts Payable and credit Utilities Expense. debit Utilities Expense and credit Accounts Receivable. o debit Utilities Expense and credit Accounts Payable. make no entry until the bill is paid. e Textbook and Media Sevedrer Attempts: 0 of 2 used State.
Frequently Asked Questions
What happens if you don’t pay a utility bill?
Companies usually do this by sending you a bill each month. If you don’t pay your utility bill, the company will turn off whatever service it provides for you. If the cancellation of service isn’t enough to get you to pay your bill, the company has to find another way to make you pay the bill.
Do you debit or credit accounts payable on utility bills?
You will debit the utilities expense account and credit accounts payable. When the bill or invoice is paid, it will affect accounts payable and cash. Because you are reducing the liability of accounts payable, it is the debit side of the transaction. You are reducing the cash asset, so you are going to credit cash.
Can a utility company make you pay the bill first?
Utility companies and bill colletors will be quick to try to get the payment in case the money goes away and they feel that they are entitled to payment first. If you are in charge of the bills, then utility bills are often near the bottom of the list for things that need to be paid first.
Is a utility bill an expense or liability?
Are utility bills an expense or a liability? Utility bills are invoices received by a company for the natural gas, electricity, water, and sewer charges that the company used during a previous month or other period of time. The usage and the amount of each bill is generally based on the meters located on the company’s property.