Describe the accounting procedures for notes payable and accounts payable.
Describe the accounting procedures for notes payable and accounts payable.
Notes payable refers to a written agreement between the payer and the payee. It is a promissory note containing the specific amount to be paid, the interest, and the date of maturity.
Accounts payable refers to the amount that is owed to entities outside an organization such as suppliers and creditors. This amount is for purchasing products or receiving services on account.
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There is not much difference in the accounting procedures for Notes Payable and Accounts Payable. Accounts payable are debts that are generally repaid...
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fromChapter 7 / Lesson 7
Learn how accounts payable works and see the accounts payable process with a flow chart of the steps. See a journal entry example and learn how to record it properly.
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