ABC Co. incurs expense of $500 on 31/12. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9.

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May Zin Soe
11-July-2024

ABC follows the accrual basis of accounting and its accounting year ends on December. What is the effect of the cleanup service on the December balance sheet of ABC?

Accounting Financial Accounting

Question added by abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م
Date Posted: 2016/02/11

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by Nadeem Mohammed , Chief Accountant , International Energy Company

Liability of $ will be increased (Creditors Increased since the invoice is due onth of Jan and ABC will pay on9th Jan, till that time it will be a liability)

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ABC Co. incurs expense of $500 on 31/12. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9.

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