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jay301289
Sep 24, 2011, 05:25 AM
Paid for postage stamps journalize it?

pready
Sep 24, 2011, 10:53 AM
If you are paying as you use the stamps:
Debit Postage Expense, Misc Expense, or other appropriate Expense account for the amount paid
Credit Cash for the amount

If you are purchasing stamps to be used later:
Debit Prepaid Postage for the amount
Credit Cash for the amount

Then as you use the stamps the journal entry will be:
Debit Postage Expense for the amount used
Credit Prepaid Postage for the amount