USA confuse a journal entry

[Fanny]

Hi, I got confuse a journal entry. If your company received the utility bill for next month from PG&E vendor, and the bill is not incurred in this month, how to record this bill as A/P? What is DR, CR?
thanks

 

[Triest123]

Hi, I got confuse a journal entry. If your company received the utility bill for next month from PG&E vendor, and the bill is not incurred in this month, how to record this bill as A/P? What is DR, CR?
thanks

=> You can view it as a "contractual obligation"(just like you sign a purchase or sales order),
so, no accounting entry is required in the current period.