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Lmnstar
Jul 5, 2007, 08:51 AM
Can someone help me with this i would like to know what entry should i make for this problem

if the bal in accts payable is 122,400 and included in the amount is $10,400 of advance deposits made by Brian Co. on future purchases.
CaptainForest
Jul 5, 2007, 12:25 PM
Accounts Payable 122,400

But of that amount 10,400 should not be there. Why not? Because it is not money you owe. It is money that someone has given you as a deposit, which is therefore unearned revenue.

Dr. Unearned Revenue 10,400
Cr. AP 10,400