Journal entry of outstanding expenses, Income.

Question

Accepted Answer

Journal entry of outstanding expenses and income is a record of expenses and income that have not yet been paid or received.

Outstanding expenses are recorded as a debit in the expense account and a credit in the accounts payable account.
Outstanding income is recorded as a credit in the income account and a debit in the accounts receivable account.
The journal entry for outstanding expenses and income is made at the end of the accounting period.
Example: Outstanding expenses of $500 are recorded as a debit of $500 in the expense account and a credit of $500 in the accounts payable account.
Example: Outstanding income of $1000 is recorded as a credit of $1000 in the income account and a debit of $1000 in the accounts receivable account.

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