Accounts payable, considered a short-term debt obligation owed by a company to suppliers and creditors, are listed on a company’s balance sheet.

Accounts payable are unpaid bills. They are what your company owes on the outstanding invoices and bills received from suppliers. These result from suppliers extending your company trade credit ...

First, at the point of sale, XYZ Company records the $500,000 as a receivable by debiting its accounts receivable account. A $500,000 credit is also entered into the revenue account.