My accounts payable account is showing a negative balance. The entries that make the balance negative are two entries with the notation "reversing old item". These were done by another person and I'm unsure why. What do I need to do to bring the balance back in line?Thanks
You can do a general journal entry, crediting accounts payable. Be sure to select the vendor in the name column.
The negative balance in accounts payable represents a vendor credit. When the company does not use a vendor credit, it represents an expense to the company. So, the debit in the GJ entry should be an expense account, such as other expenses. Richard
