Accounts Payable Journal Entry: A Complete Guide with Examples
Further, it also ensures proper invoice tracking and avoiding duplicate payment. When the company buys or purchases on credit, the liability will occur when goods or services are received. Hence the company will debit goods received or services expended and credit accounts payable as liabilities increase. When doing this, always remember that the debits and credits must be equal. The supplier’s late policy is a $100 late fee and 3% interest on the invoice amount ($300 for a $10,000 invoice).…
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