Which of the following is the correct journal entry to record depreciation expense?

• A. Debit Depreciation Payable; Credit Depreciation Expense.
• B. Debit Accumulated Depreciation; Credit Depreciation Expense.
• C. Debit Depreciation Expense; Credit Accumulated Depreciation.
• D. Debit Revenue; Credit Depreciation Expense.

Answer: (C)

Depreciation is recorded by recognizing an expense and increasing a contra-asset. The proper entry debits depreciation expense, which increases expenses on the income statement, and credits accumulated depreciation, which raises the contra-asset account and reduces the asset’s net book value. This reflects the asset gradually wearing out over time without affecting cash.

Other approaches would either move the amount to the wrong type of account (for example, debiting the contra-asset rather than the expense) or involve revenue or a liability, which doesn’t align with how depreciation is recorded.