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Accrual

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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July 2, 2021 at 3:25 pm #626845
rinna2345
Member
- Topics: 1
- Replies: 0
Hi, I am having some difficulty figuring out the double entry in May. When we received the invoice does it mean we immediately pay in cash? How do I record the double entry in May?
Question :
Jan to Apr 2020 we accrued advertising expense of $ 100/month, in May 2020 we received the whole year invoice amounting to $1,200. Please prepare Jan-Dec 2020 journals.
your help will be much appreciated.
July 2, 2021 at 4:24 pm #626849
John Moffat
Keymaster
- Topics: 56
- Replies: 51585
When the May invoice is paid, the entry is Cr Cash and Dr advertising, and the existing accrual is removed by Dr accruals Cr advertising.
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