Paid $1,000 cash on amount owed for a truck and $500 on the amount owed for supplies. How would this be entered in a journal and which title account?
Debit accounts payable 1500
Credit cash 1500
You might have slightly different accounts (if it was a note, etc), but most of the time it's under the general Accounts Payable.
Thanks again Kelsey its a continuation from my first question. I'm glad you are there to help shed some light on this subject
Glad to be able to help. Since these assets are already recorded, that's why only the liability and cash are affected for this entry.
When might an accountant use cash basis accounting without violating generally accepted accounting principles?
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