Tx16. Pay supplier - $6,000
The net profit brought forward is $160.
What do we have more of, or perhaps less of, as a result of this transaction?
What do we have more of, or perhaps less of, as a result of this transaction?
Observations:
This obligation was created on January 31 (Tx4) when we purchased the equipment for $6,000 on 30 days payment terms. That means the due date for this payment was March 2 (if we assume February had 28 days). We paid on March 31, some 4 weeks late.
Does this matter?
The net profit at the end of the activity is $160.