Recording supplier bills
Objective: Record supplier bills with correct account coding.
Recommended first: Working from source documents
When a bill arrives, record what was received — an expense, inventory, supplies, or equipment — and credit Accounts Payable. A bill with several lines may need several debit accounts.
Coding a bill means deciding which account each line belongs to. Ask what the item is and when its benefit is used. Supplies for future use are an asset; repairs are an expense; equipment is capitalized. Approval before recording or paying helps prevent fictitious or duplicate bills.
If a bill arrives for goods not yet received, many businesses hold it until delivery is confirmed.
Check your work
- Is each line coded by what it is?
- Is the bill approved and matched to what was received?
- Does the payable total equal the bill total?
$150 paper supplies (asset) and $90 repair (expense) on one bill.
| Account | Debit | Credit |
|---|---|---|
| Supplies | $150.00 | |
| Repairs and Maintenance Expense | $90.00 | |
| Accounts Payable | $240.00 |
Common mistakes
✗ Coding everything on a bill to one expense.
✓ Split by line item.
Guided practice
Use hints freely here.
Item 1 of 1
Supplies on account
On Mar 4, 2026, BrightNest Cleaning Co. receives bill #B-388 from a wholesaler for $250.00 of cleaning supplies, payable in 30 days.
- Date
- Mar 4, 2026
- Terms
- Net 30
| Description | Amount |
|---|---|
| Microfiber cloths, detergent, mop heads | $250.00 |
| Total | $250.00 |
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
One supplier bill, two accounts
On Mar 11, 2026, Corner Bean Café receives one bill from a restaurant-services company: $355.00 for paper supplies (to be used over the month) and $175.00 for a fridge repair done today. Payment is due in 30 days.
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Key terms
- Bill
- A supplier's invoice received by the business.
- Accounts payable
- Amounts owed to suppliers.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.