If I hire a mechanic to fix machinery on 60 day terms, I increase accounts payable. What is the balancing transaction post for this event?

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An increase in AP is a debit. Do I need to create an asset account for machinery repairs for the credit?

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Originally Posted by paulcrowley

An increase in AP is a debit. Do I need to create an asset account for machinery repairs for the credit?

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Do you understand double entry accounting at all? Accounts payable is a liability and therefore a credit, machinery repairs is not an asset but an expense. There endith the lesson