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21 January, 04:42

On February 1st, your accrual based company incurs $500.00 for services. On February 25th, your company pays $300.00 towards the services and then, on March 5th, pays the $200.00 balance. How is the $200.00 payment made in March recorded?

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  1. 21 January, 05:35
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    Debit Credit

    Feb 1

    Services 500

    Accounts Payable 500

    Feb 25

    Accounts Payable 300

    Cash 300

    March 5

    Accounts Payable 200

    Cash 200

    The entries made in March 5th zeroed out the Accounts Payable on the Services bought on account last February 1st.
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