A/R And A/P For Same Company In Simply Computer Software

A/R and A/P for Same Company

A/R and A/P for Same Company

So this is what I have, Company A owes Company B $100.00, but Company B owes Company A $100.00 so what do I do in Simply Accounting as far as an entry so we don't have to write checks to each other. In other words, what would the journal entry in Simply Accounting Software be?



DENISE

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Dec 07, 2017
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Accounts Receivable and Accounts Payable
by: Stephanie

Thank you for your question about Accounting for an equal trade between two companies and how to handle the Accounts Receivable and Accounts Payable entries.

This could be considered a trade of services in which no money is changing hands but the expense is still being accounted for.

The entry on both sides would be:

CREDIT A/R to clear the customer invoice
DEBIT Contributions Account (Equity)

CREDIT Contributions Account (Equity)
DEBIT A/P to clear the vendor bill

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