1.
Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.
The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.
2.
Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.
The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.
3.
Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur.
The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially
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MYLAB ACCOUNTING WITH PEARSON ETEXT --
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