87 – Heat, Light, Power, & Water

Overhead Expenses

 

Synopsis

Account 87

Debits

Credits

  1. The expense of fuel, electricity, gas and water used by the retailer.

  2. The month-end accrual of fuel, electricity, gas and water.

  1. The reversal of the month-end accrual.

 

 

Remarks:

Fuel purchased in quantities that will be consumed over a prolonged period (several months) should be recorded in Prepaid Expenses - Other (Account 269D), and prorated to expense on a monthly basis.

The estimated expenses for fuel, electricity, gas, and water should be accrued from the last billing cut-off date or from the previous month-end to the current month-end, whichever is applicable.