When delivery expenses increase, what is the correct journal entry?

When delivery expenses increase, the correct journal entry involves debiting expenses because this action reflects that additional costs have been incurred, therefore increasing the total expense account. In accounting, expenses are recorded with a debit entry; this indicates that there is a rise in the cost associated with operations, such as delivery, which will ultimately be reflected in the financial statements.

The increase in delivery expenses will decrease net income since expenses reduce overall profit. This entry impacts the financial health and reporting of the business, signaling to stakeholders that more resources are being devoted to logistics, which may be strategic depending on the context.

In contrast, crediting expenses wouldn’t accurately represent the increase in costs, since credits in expense accounts typically signify a reduction in expenses. Debiting liabilities or crediting assets would not be appropriate either, as those actions pertain to changes in obligations or resources owned, not the direct recording of an expense increase. Overall, debiting expenses accurately captures the increased costs incurred due to delivery.