Question

If a housekeeping vendor cleans the room(s) in Jan. 2022, but we did not receive the invoice until Feb. 2022, what would be the double sided entries in Jan. 2022 and Feb. 2022?

Answer 1

In January, the entries would recognized as follows:

• Account Payable will be credited;
• while Cash is debited.

In February,

• Credit the Vendor,
• Debit Account Payable.

What is account payable?

Account payable is a term that is used to depict the moneys that are owed that that need to be paid to vendors and service providers for services rendered or goods purchased on credit.

What is the double entry principle?

The double entry principle is one of the principles of accounting. The fundamental tenet of double entry is that every debit must be balanced by an equal and opposite credit entry.

Any transaction must involve a minimum of two accounts:

• Credit Side; and
• Debit Side.

The debit and credit accounts of the transaction serve as the foundation for the double entry.

For example, if a business takes out a $10,000 loan, the cash (asset) account is debited to $10,000 and the outstanding debt (liability) account is credited $10,000.

Learn more about Account payable:

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