CHAPTER 8, pp. 234-258
Accounting for Notes Payable, Prepaid Expenses, and Accrued Expenses
Borrowing money with a Notes Payable, Line of Credit
Interest Bearing and Discounted Notes Payable
Some expenses, such as insurance and advertising, require a payment before the benefit is received. Thus–Prepaid Expenses
Accrued Expenses are incurred in one fiscal period but not paid until a later fiscal period.
Warranty Expense-Cost of repairs on merchandise that is sold.