To record the electricity expenses paid for $450 in cash, following is the entry:Debit Electricity expenses for $450Credit Cash for $450 True False

Break Down the Problem

1. Identify the accounts involved in the transaction.

   • Debit: Electricity Expenses
   • Credit: Cash

2. Understand the nature of the transaction.

   • The transaction indicates a payment for electricity, which typically results in an increase in expenses and a decrease in cash.

Relevant Concepts

3. In accounting, when recording transactions:
   • Debits increase expense accounts and decrease asset accounts.
   • Credits decrease asset accounts and increase liability or equity accounts.

Analysis and Detail

4. In this case:

   • Debiting “Electricity Expenses” increases the expense account by $450, reflecting the cost incurred.
   • Crediting “Cash” decreases the cash account by $450, indicating that cash has been paid out.

5. The journal entry as described is appropriate for recording this transaction.

Verify and Summarize

6. The entry accurately reflects the decrease in cash and the increase in expenses, both of which are correctly recorded.

Final Answer

True. The journal entry correctly debits Electricity Expenses for $450 and credits Cash for$450.