Purchased Equipment From ABC Company, $9,000. Paid $1,500 Down And The Balance Was Placed On Account. Payments Will Be $375.00 Per Month For Twenty Months. The First Payment Is Due 4/1. How Would You Enter This Into A Journal Entry?

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Home Accounts Payable

⟩ Purchased equipment from ABC company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. How would you enter this into a journal entry?

1.Entry
Purchase Account Dr $9000
To Cash/Bank A/c Cr $1500
To Payable A/c Cr $7500
2. Entry
Recurring Entry setup for 20 months every month from 4/1
Payable A/c Dr $375
To Cash/Bank A/c Cr $375

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Question and Answer:

Home Accounts Payable

⟩ Purchased equipment from ABC company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. How would you enter this into a journal entry?

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Question and Answer:

Home Accounts Payable

⟩ Purchased equipment from ABC company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. How would you enter this into a journal entry?

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