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You would debit accounts payable and credit Debt Forgiveness income
To recognize income from the forgiveness of debt
If you didn't want to do that, you would debit accounts payable and credit miscellaneous income/expense
the explanation would be "to write off accounts payable"
im ok with the first option of debt forgiveness, though the vendor did not actually "forgive" the debt. is that ok?
Yes, that's okay
It's still income because it's debt you aren't paying
Is there anything else that I can assist you with today?
no thats it, thanks
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