Which accounting entries indicate that supplier invoices have been created after configuring expense items to accrue at receipt?

The correct answer highlights the typical accounting treatment for the creation of supplier invoices in relation to inventory and expense accounting when expenses are accrued at the time of receipt.

When configuring expense items to accrue at receipt, the system accounts for the receipt of goods or services before the invoice from the supplier is formally recorded. As a result, the accounting entries should reflect the cost incurred for the items received, transitioning it from an inventory or work-in-progress status to an expense.

In this context, the debit to Cost of Goods Sold signifies that the expense related to the items received is recognized in the financial period they were incurred regardless of when the payment occurs. This reflects the matching principle of accounting, which states that expenses should be matched to the revenues they help generate. The corresponding credit to Accounts Payable indicates that the business now owes this amount to the supplier, reflecting the liability created by the receipt of goods or services.

This accounting entry setup is crucial for maintaining accurate financial records, particularly when goods are received prior to receiving an invoice, as it ensures that expenses are recognized in a timely manner, aligning them with the period in which they were incurred.