Which account is debited in an adjusting entry to record depreciation on machinery?

• A. Accumulated Depreciation
• B. Cash
• C. Machinery
• D. Depreciation Expense

Answer: (D)

Verified step by step guidance

1. Understand the concept of depreciation: Depreciation is the allocation of the cost of a tangible asset over its useful life. It reflects the wear and tear or obsolescence of the asset over time.
2. Recognize the accounts involved: Depreciation Expense is an expense account that records the periodic cost of using the asset, while Accumulated Depreciation is a contra-asset account that reduces the value of the asset on the balance sheet.
3. Determine the adjusting entry: Adjusting entries are made at the end of an accounting period to update accounts for transactions that have occurred but are not yet recorded. For depreciation, the expense must be recorded.
4. Identify the debit and credit: In the adjusting entry for depreciation, Depreciation Expense is debited to increase the expense account, and Accumulated Depreciation is credited to increase the contra-asset account.
5. Write the journal entry: The adjusting entry would be formatted as follows: Debit Depreciation Expense and Credit Accumulated Depreciation. This ensures the expense is recognized in the income statement and the reduction in asset value is reflected on the balance sheet.