Financial Accounting Fundamentals | Online Course Support

College Computers purchases $25,000 worth of laptop computers from Hewlett-Packard this month and will pay Hewlett-Packard next month. In which of the following Balance Sheet accounts should College Computers record the obligation to pay Hewlett-Packard?


Correct answer. Since a future payment is probable and the event (purchasing the inventory) has occurred, the obligation to pay the supplier should be recorded in a Liability account.

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