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when an invoice is recorded in accounting it is typically done through a journal entry the journal entry captures the financial impact of the transaction and ensures that the appropriate accounts are updated heres an example of a journal entry for recording an invoice assuming a company receives an invoice for one thousand dollars from a vendor for the purchase of goods and there are no applicable taxes debit the relevant expense or asset account in this case lets assume the purchase is for inventory items the journal entry would begin by debiting the inventory account for one thousand dollars debit inventory one thousand dollars credit the accounts payable account the accounts payable account reflects the amount owed to the vendor the journal entry credits the accounts payable account for the same amount of one thousand dollars credit accounts payable one thousand dollars the journal entry records the increase in the inventory account indicating that the company now holds one thousa
