[number_cruncher_24]

Hi – I was wondering if someone could help me with an accounting question – here’s the scenario: Our fiscal year ends on May 31. We received a bill for our insurance policy on May 20. The bill is for insurance for the period of 6/15 through 12/15. We enter all bills into the system when received. When I enter this bill into the system, it will result in a credit to A/P but which account should be debited? It’s not an expense for the current fiscal year because it is for a future period, but we won’t pay it until after 5/31, so it’s not a prepaid yet either.

[iwannabeacpasofreakinbadpass]

@mayo it couls be anything… for instance prepaid insurance or rent.

[iwannabeacpasofreakinbadpass]

@mayo it couls be anything… for instance prepaid insurance or rent.

[Author]

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