Received a $95 bill for telephone service during the month of October (the bill is paid in November).
Telephone Expense
accounts payable
or is it,
accounts recievable
service revenue
Based on the information provided, it seems that you have received a bill for telephone service during the month of October. In accounting, bills are typically recorded as "accounts payable."
To explain further, "accounts payable" is a liability account that represents the amount owed by a company to its suppliers or vendors for goods or services received but not yet paid for. When you receive a bill, you record it as an increase in the accounts payable balance to reflect the debt owed.
Therefore, you would record the telephone expense under the "Telephone Expense" account and increase the "Accounts Payable" account balance to reflect the amount owed. The journal entry would look like this:
Telephone Expense $95
Accounts Payable $95
On the other hand, the "accounts receivable" and "service revenue" accounts are typically used when you provide goods or services to customers and they owe you money. In this scenario, since you are the one receiving the bill, it is not related to accounts receivable or service revenue.
It's important to note that specific accounting entries may vary depending on the accounting system and the chart of accounts used by your business. It's advisable to consult with a professional accountant or refer to your company's accounting policies to ensure accurate recording of transactions.