A business purchases and fits new tyres for its delivery van on credit. The date the tires are fitted and the date of the invoice is 25 June 2016. The invoice was paid in full on 15 July 2016. Under the accrual system of accounting, what is the effect of this transaction? Pass the journal entry and explain.

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Under the accrual system of accounting the effect of this transaction would be as follows 1 On the d... View the full answer