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If you want to enter a purchase without affecting Accounts Payable, what is one way to do that?

1 Answer

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Final answer:

To enter a purchase without affecting Accounts Payable, pay with cash or a debit card, resulting in an immediate payment that does not create a liability, and record it as a debit entry in the Cash or Bank account.

Step-by-step explanation:

If you want to enter a purchase without affecting Accounts Payable, one way to do that is to record the transaction by paying with cash or using a debit card. This means the purchase is paid for immediately, and there is no need to create a liability in Accounts Payable. Recording the transaction this way should be reflected in the Cash or Bank account with a debit entry for the purchase amount, and a corresponding credit entry in the expense account or asset account that the purchase relates to. This cash-based transaction represents an outflow of funds from the cash or bank balance and does not generate a liability as would normally be the case when purchasing on credit.

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