D. A credit to liability. Adjusting entries allow you to adjust income and expense … 2.The journal to record an accrued expense includes a credit to which account? Maintenance of so many accrued expenses every day, day after day, is a difficult job for an accountant. 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 an asset. A set of accrual or deferral journal entries with the corresponding adjusting entry provides a complete picture of the transaction and its cash settlement. B. C. Expense account and a credit to cash. A company usually recognizes an increase in accrued expenses immediately as it occurs. 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. B. C. A credit to an asset. An accountant records unpaid salaries as a liability and an expense because the company has incurred an expense. B. Expense account and a credit to a prepaid account. 1) The adjusting entry required to record accrued expenses includes: A credit to liability. 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 debit to an asset. The company estimates that $1,200 of the year-end receivables will not be collected. Expert Answer A credit to cash. The adjusting entry required to record accrued expenses includes: A. A debit to an asset. See the answer. Essential Points to Note about Accrued Expense Journal Entry. The inventory costs $3,100 and is expected to sell for $5,200. 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. A credit to cash. 44. 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. The adjusting entry required to record accrued expenses includes: A. Show transcribed image text. Expense account Wrong. If an adjusting entry is not made to accrue expenses, then the balance sheet liabilities will be? 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