A journal entry for accounts payable is an accounting transaction used to record expenses and liabilities that have been incurred but not yet paid. This type of journal entry records a company’s expenses, such as goods or services purchased on credit from their suppliers. By recording these expenses when they happen, businesses can track their expenses and maintain accurate financial records. With a journal entry for accounts payable, companies are able to prioritize their payments and accurately assess the amount owed by them at any given time. This helps ensure that all bills are paid in full and on time, helping companies avoid late payment fees and maintain healthy relationships with their suppliers.