300 – Accounts Payable – Trade Creditors

Current Liabilities

Accounts & Notes Payable

Synopsis

Account 300

Debits

Credits

  1. Payments made on open accounts, including cash discounts taken.

 

  1. Liabilities incurred for merchandise, equipment (including lease/purchase items), and services purchased on open account.

 

Remarks:

The balance in this account represents the total amount due to trade creditors for the purchase of material, equipment, and services on open account.

Equipment lease/purchase contracts having a note attached should be recorded in Accounts Payable – Other (Account 314) or Other Long-Term Debt (Account 347), whichever is applicable.

It is recommended that purchase orders be properly used authorizing all purchases.  Purchase orders should be issued only by authorized persons.

Vendor invoices should be matched with the related purchase orders, cross referenced, and attached prior to being recorded and filed in an accounts payable voucher envelope.

A schedule should be prepared and reconciled each month-end.  The total should agree with the balance in this account.

Note: