When a company pays for services received using a check,it should credit Accounts Payable until the check is paid by the bank.The credit is to the Cash account.

Question

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When a company pays for services received using a check, it should debit Accounts Payable to decrease the liability and credit the Cash account to reflect the decrease in cash, immediately upon issuing the check, not waiting until the check is paid by the bank.

When a Company Pays for Services Received Using a Check,it