The official business definition of Accounts Payable is that it is a liability account that records the amounts owed to suppliers and other creditors for goods and services purchased on credit. This account is typically used to record expenses that are incurred in the normal course of business. The account is usually credited when goods or services are received and the invoice is paid. The account is debited when payments are made to suppliers and other creditors. In other words, when money is owed to a supplier or creditor, the Accounts Payable account is debited, and when money is paid to a supplier or creditor, the Accounts Payable account is credited. In short, Accounts Payable is a debit account.
