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For an accrual estimate, assume a $18,600 utility charge is incurred evenly over a 30-day service period. Eighteen days have been incurred and remain unbilled at the reporting date. What expense is accrued?

Correct Answer

B) $11,160.00

Under the stated even daily allocation, daily cost is $18,600/30 = $620. Eighteen incurred days give 18 × $620 = $11,160. The $7,440 option represents the 12 unincurred days; actual utility usage need not accrue uniformly.

Answer Options
A
$18,600.00
B
$11,160.00
C
$7,440.00
D
$620.00

Why This Is the Correct Answer

Under the stated even daily allocation, daily cost is $18,600/30 = $620. Eighteen incurred days give 18 × $620 = $11,160. The $7,440 option represents the 12 unincurred days; actual utility usage need not accrue uniformly.

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