What causes accounts payable to increase or decrease?

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Answer

1051803

2026-03-17 00:40

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When an item is purchased on credit Accounts Payable increases. For example if you purchase something for $250 on credit this is the entry to increase accounts payable.

Purchases 250

Accounts Payable 250

When you pay for your purchases it will decrease accounts payable.

Accounts Payable 250

Cash 250

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