Accounts payable



Q25. Accounts payable
On January 8, 20×1, Entity A paid $11,000 in cash to pay off the balance of its accounts payable to supplier M.
Prepare a journal entry to record this transaction.

A25. Decreases in accounts payable are recorded on the debit side.

  Debit Credit
Accounts payable 11,000  
     Cash   11,000

[Note]
Decrease in accounts payable (liability): debit

[Exercise]
On December 31, 20×1, Entity B had $18,000 balance of the accounts payable to supplier N. On January 10, 20×2, Entity B paid $18,000 to pay off the accounts payable balance.

January 10, 20×1: to record the payment of accounts payable

  Debit Credit
Accounts payable 18,000  
     Cash   18,000

[Note]
Decrease in accounts payable (liability): debit

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