The amount you are billed is the amount you pay and it is reported as just that. You report the dollar amount you pay out and report the same. There is no "value" factor involved in that process. If what you are purchasing is going to increase in value, such as a piece of equipment, it does not belong under accounts payable, rather under capital expense.
trading account expenses
If the packing slip shows a shortage, the Accounts Payable department should send it back.
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
False Because it determines when revenue is credited to a revenue account. Cash method means the transaction is reported when cash is received, but the revenue recognition concept means a transaction is reported as a sale even if no money has been paid. Cash basis does not recognize payable or receivable accounts.
equipment debitaccount payable creditthis isif any problem in accounting i am here
Accounts Payable is a liability so it should be a credit balance.
No actually... Cash paid to credits should credit cash account and debit payable account
No actually... Cash paid to credits should credit cash account and debit payable account
No actually... Cash paid to credits should credit cash account and debit payable account
trading account expenses
If the packing slip shows a shortage, the Accounts Payable department should send it back.
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
in Account payable and account receivable
For a mortgage payment, the only amount that should be listed in the Mortgage Loan Payable section is the principal amount. Any interest that has accrued is reported as Interest Payable.
False Because it determines when revenue is credited to a revenue account. Cash method means the transaction is reported when cash is received, but the revenue recognition concept means a transaction is reported as a sale even if no money has been paid. Cash basis does not recognize payable or receivable accounts.
You should make the check payable to the person or organization that you are paying.
You should make the check payable to the person or organization that you owe money to.