what is the journal entry for accrued expenses 
accrued expenses are recognized by debiting the appropriate expense account and crediting an accrued liability account a second journal entry must then be prepared in the following period to reverse the entry for example a company wants to accrue a 10 000 utility invoice to have the expense hit in june the company s june journal entry will be a debit to utility expense and a credit to accrued payables then the company theoretically pays the invoice in july at which point they debit the accrued payables account to remove the liability now paid and credit cash to reflect the cash outflow the bottom linecompanies using the accrual method of accounting recognize accrued expenses costs that have not yet been paid for but have already been incurred accrued expenses make a set of financial statements more consistent by recording charges in specific periods though it takes more resources to perform this type of accounting while the cash method of accounting recognizes items when they are paid the accrual method recognizes accrued expenses based on when service is performed or received 