ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, what is the effect on the Cash account and will the Cash account be debited or credited?
- Anonymous8 months ago
Credit Cash and Debit accounts payable. Start thinking about accounting being Left and Right. This is why it's called a double entry system. On the balance sheet the Assets like cash and equipment are always on the Left. Payables and debt are always on the Right. The difference between the Left and the Right is the Net Worth. Picture it in your head or get a sheet of paper and make a map. Remember that the Expense Report is a completely different document and feeds into the balance sheet.
- GregLv 78 months ago
That is too trivial to answer it for you. Think about it. Pay attention in class. Read your assignment. I'm not going to take your tests.