Adjusting Entries #3 Late Invoices for BAF3M

1. Adjusting Entries #3
Late Arriving Invoices

2. Late Arriving Invoices
• If expense items are purchased near the end of the accounting period
–the invoices (or “bills”) may not arrive until the subsequent
accounting period.
• However, due to the matching principle the expense items need to be
recorded in this fiscal period.
• DR – what was purchased (usually expense accounts but could
possibly be an asset
• CR – Accounts Payable (you purchased it – haven’t paid for it yet)

3. Adjusting Entries
Adjustment #3:
Late Arriving Invoices
The Accounts Payable balance
does not include two invoices
that arrived late

4. •Two late invoices have arrived
•$212 for the Telephone Bill
•$315 for the Utilities Bill

5. What is the Balance?
Little analysis is needed for this adjustment

6. The Adjustment
Simply enter the late invoices

7. The Adjustment contd.
Simply enter the late invoices

8. What Should the Balance Be?
And calculate the adjusted balance

9. Expense: What is the Balance?

10. The Adjustments

11. The What Should the Balance Be?

12. What that Looks Like in the Journal
The adjusting entry for late invoices as it would
appear in the general journal (the 3rd entry)