06-10-2010, 02:49 PM
Dear,
In this case at the end of May you have to make a provision by using best estimate of the amount to be paid against such invoice and creat a accrued expense (Liability). When the actual invoice will be received then you will reverse the accrued expenses and record in payable account. So, an estimated amount will be shown as liability at the end of May.
In this case at the end of May you have to make a provision by using best estimate of the amount to be paid against such invoice and creat a accrued expense (Liability). When the actual invoice will be received then you will reverse the accrued expenses and record in payable account. So, an estimated amount will be shown as liability at the end of May.
