Hi,
I'm confused about paying for PPE with a credit card. For example:
When I buy $1K of PPE and pay with a credit card (a note), I record:
dr PPE $1K
cr Note payable (credit card payable) $1K
Then when I pay the credit card (the note) I record:
dr Note payable $1K
cr Cash $1K
The problem with the above transactions is that they never generate an investing cash flow. This can't be right! Does anyone know how to properly record these events so that the PPE purchase ultimately generates an investing cash flow?
Thanks!
Anthony Webster
I'm confused about paying for PPE with a credit card. For example:
When I buy $1K of PPE and pay with a credit card (a note), I record:
dr PPE $1K
cr Note payable (credit card payable) $1K
Then when I pay the credit card (the note) I record:
dr Note payable $1K
cr Cash $1K
The problem with the above transactions is that they never generate an investing cash flow. This can't be right! Does anyone know how to properly record these events so that the PPE purchase ultimately generates an investing cash flow?
Thanks!
Anthony Webster