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Accounts Payable Increase Debit Or Credit

oboloo Glossary

Accounts Payable Increase Debit Or Credit

Accounts Payable Increase Debit Or Credit is a term used in accounting that explains the entry of an increase to an accounts payable asset. This occurs when an organization has purchased goods or services from a vendor, and the vendor has sent an invoice for payment. The Accounts Payable Increase Debit entry increases the accounts payable asset, which means that money that is owed to the vendor has gone up. The corresponding Credit entry must be made in the same period to match the amount of the liability increase. Ultimately, the Accounts Payable Increase Debit entry allows businesses to track their obligations to vendors and ensure they are paid according to their legal agreements.

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