(1) Accrued Expense a liability account; expenses incurred but not yet paid; can match with earnings

debit= expense;
credit= liability(payable)
(2) Accrued Revenue an asset account; revenue earned but not yet received/collected; can match with expense
debit= receivable
credit= revenue
(3) Prepaid/Deferred Expense- asset account; expenses paid in advance; opposite of accrued expense
Asset Method
upon payment:
debit= asset (ex. supplies);
credit= cash;
upon adjustment
debit= expense (ex. supplies expense);
credit= asset (supplies)
Expense Method
upon payment:
debit= expense (ex. supplies expense);
credit= cash;
upon adjustment
debit= asset (ex. supplies);
credit= expense (supplies expense)
(4) Deferred Revenue- liability; revenues collected/received in advance
Liability Method
upon payment:
debit= Cash
credit= liability account (ex. Unearned rent revenue);
upon adjustment
debit=liability account (ex. unearned rent revenue) ;
credit= revenue (ex. rent revenue)
Revenue Method
upon payment:
debit=Cash
credit= revenue (ex. rent revenue)
upon adjustment
debit= revenue (ex rent revenue),
credit= liability account (ex Unearned rent revenue)
(5) Depreciation Expense-depreciation of cost of fixed/plant assets (except land); contra-asset account
Depreciation Rate:

Asset Cost Estimated Residual Value=

Depreciable Cost
=Annual Depreciation
Estimated Useful Life

Debit=Depreciation Expense (name of asset)

Credit=Accumulated Depreciation (name of asset)
(6) Uncollectible Accounts or Bad Debts Expense- companys receivables which might not be collected; recognizes the
anticipated loss that the business might incur; contra-asset account
Debit=Uncollectible accounts expense or Bad debts expense
Credit=Allowance for uncollectible account