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