Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan Tashkent State University of Economics



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AccountName

Debit

Credit







AccountsPayable

$2,000










Cash




$1,960







Discount




$40







Here in this example, the CDE company saved 40 dollars by making an early payment.

3. Journal Entries for Accounts Payable and Account Receivable


Accounts Payable Journal Entries refers to the amount payable accounting entries to the creditors of the company for the purchase of goods or services and are reported under the head current liabilities on the balance sheet and this account debited whenever any payment is been made.
Whenever there is any transaction related to the purchase of goods or services on the account, then there arises the liability known as accounts payable liability. This is to be created and recorded in the books of accounts by the company. To document the journal entries for accounts payable, the amount is measured using the seller’s invoice as it usually contains information in detail regarding the amount that the buyer has to pay and the due date.
Below are some of the common situations wherein the accounts payable journal entries are to be maintained.

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