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Accounts Payable is the account you use when you "owe" another person or company money for either a service or product. When it comes down to it, you don't "write off" the account but instead you "close" the account. This is done by a couple of methods.
Since you are referring to "defective" goods, more than likely you will want to return the defective product for either a refund or replacement. If you choose replacement and it turns out to be an even trade, you may still wish to make the following changes. Since the product will have a new serial number, you will want to note this in the account.
Account Payable - Washing Machine (debit) $500
Equipment-WM- Exchange for new product (credit) $500
This removes the original equipment from your books.
Equipment-WM-Replacement for defective product (debit) $500
Account Payable- Washing Machine (credit) $500
This places the new equipment onto your books
However, if you choose refund, then you post to the account just opposite of how it was posted when your made the initial purchase.
For example, say you purchased a Washing Machine for $500 on account. When you purchased this item, your accounts would be
Equipment-Washing Machine (debit) $500
Account Payable - Washing Machine (credit) $500
If you return the defective machine and get a refund (or credit since you haven't paid for it yet) you reverse the above by crediting your equipment noting the reason and debiting the account payable.
I could go into a few more details, but if you are into accounting then you already know the process of paying off an account payable and how that transaction is posted.
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How do you write off accounts payable?
Debit Accounts Payable and Credit either the account where the original debit was made or Credit Other Income
What is the general ledger journal entry to write off accounts payable checks?
If you've made a payment on the vendor account which was previously incurred the entry would be: Debit: Accounts Payable; Credit: Cash If you're trying to write-off an unpaid accounts payable the entry would be: Debit: Accounts Payable; Credit: Expense Settlement Account (Contra-Expense account on the P&L that will flow through to Retained Earnings.
How to write off account payable?
You can right off accounts payable by either: -Paying the balance, -Entering a credit memo against the open balance.
Which one affect of cash is cash dividend or account payable or depreciation or write of?
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
Can very old Accounts Payable be written off If so how old must they be?
One would think that only Accounts Receivable would be able to write off an Account Payable. It's still due and payable as long as the company to which the balance is owed is still in business. Bills due are just not simply forgiven because it's been a year or two since they were due.
What are the journal entries you write for Goods Purchases?
When Goods purchased on cash[Debit] Purchases xxxx[Credit] Cash/bank xxxxWhen purchased on credit[debit] purchases xxxx[credit] accounts payable xxxxWhen actual payment:[debit] Accounts payable xxxx[Credit] Cash / bank xxxx
How do you write off accounts payable?
Debit Accounts Payable and Credit either the account where the original debit was made or Credit Other Income
What is the general ledger journal entry to write off accounts payable checks?
If you've made a payment on the vendor account which was previously incurred the entry would be: Debit: Accounts Payable; Credit: Cash If you're trying to write-off an unpaid accounts payable the entry would be: Debit: Accounts Payable; Credit: Expense Settlement Account (Contra-Expense account on the P&L that will flow through to Retained Earnings.
What are carrier object for resume?
I want write the object in my resume for accounts payable job
How to write off account payable?
You can right off accounts payable by either: -Paying the balance, -Entering a credit memo against the open balance.
Which one affect of cash is cash dividend or account payable or depreciation or write of?
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
Can very old Accounts Payable be written off If so how old must they be?
One would think that only Accounts Receivable would be able to write off an Account Payable. It's still due and payable as long as the company to which the balance is owed is still in business. Bills due are just not simply forgiven because it's been a year or two since they were due.
What is the accounting standard terms to write off Accounts payable?
Generally speaking you do not "write off" accounts payable. This is something your company owes and are obligated to pay. Repercussions for not paying vary greatly depending on what is owed and what it is owed for. If the payment is due on a Vehicle Note, obviously not paying will eventually lead to repossession of the property. Rent/Mortgage will lead to eviction or foreclosure. Usually an account payable is "closed" by either paying the amount due and bringing the account balance to zero or making other legal arrangements with the account holder (who you owe the money to) but an account payable is never "written off".
Credit vs debit?
Debit is the left side of accounting statement and Credit is the right side of accounting statement. By debit we mean something comes inside the organization and by credit we mean, something goes outside the organization. That means debit means inflow and credit means outflow. For Example, we write Accounts Recieveable at, cash in hand, cash at bank, and assets at the left side of accounting statement as debit and write Accounts Payable, Bonds Payable, Bills Payable and other liabilities at the right side of accounting statement as credit. Hope answer the question
How do you write off loans payable?
I think you have to die!
What are the functional areas the nhs?
finance dnnw bwt the rest - write how staff get their wages, needs to keep accounts of goods purchased and managing budgeting
If a company has a DBA who do you make the check payable to?
if a business is a dba who do you write the check pyable to
