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In the tutorial, the speaker processes a transaction dated February 6th, involving a bill from Williams Office Supply Company for office supplies (invoice KA-2) totaling $475, due by March 8th. Since the supplies are not immediately used, they cannot be recorded as an expense but must be categorized under a prepaid asset account (office supplies account 1305). As the bill indicates that payment is not made immediately, the entry is processed in the "Enter Bills" window with the vendor, date, and amount specified. The speaker then allocates the expense to the office supplies account and chooses to click "Save and close" to finish the transaction.
