Question

-Copy of vendor invoice #4412 for $27,000 received on March 3 showing terms of net 30

- Payment voucher with the vendor name and amount due
- Copy of the remittance advice sent to the vendor showing #4412 included in the payment to the vendor made on March 28
1. Would you enter accounting transactions?
2. If so, what accounting entries would you make?

Answer 1

To record the accounting transactions, debit Accounts Payable and Vendor Invoice on March 3, and debit Vendor Invoice, Accounts Payable, and credit Cash on March 28.

Step-by-step explanation:

To record the accounting transactions for the given scenario, you would make the following entries:

1. On March 3, when the vendor invoice #4412 is received, you would debit Accounts Payable for $27,000 and credit Vendor Invoice #4412 for $27,000.
2. On March 28, when the payment is made, you would debit Vendor Invoice #4412 for $27,000, debit Accounts Payable for $27,000, and credit Cash for $27,000.

These entries will accurately reflect the invoice received, the payment made, and the impact on the relevant accounts.