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puteri [66]
3 years ago
15

On February 1st, your accrual based company incurs $500.00 for services. On February 25th, your company pays $300.00 towards the

services and then, on March 5th, pays the $200.00 balance. How is the $200.00 payment made in March recorded?
Business
1 answer:
Zigmanuir [339]3 years ago
3 0
                                              Debit                Credit

Feb 1
Services                                500
           Accounts Payable                               500

Feb 25
Accounts Payable               300
          Cash                                                      300

March 5
Accounts Payable               200
          Cash                                                      200

The entries made in March 5th zeroed out the Accounts Payable on the Services bought on account last February 1st.
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