You debit your advertising expense account because it is an increase in your expenses. You credit your accounts payable account because it is a liability. When you pay the invoice for your advertising and promotion expense, you will create another journal entry. All other debts that are payable within one year are considered current liabilities. This includes bookkeeping credit card debts, sales tax payable, payroll taxes payable, dividends, customer deposits, bank overdrafts, salaries payable, and rent expenses. Unfortunately, your primary residence is not really an asset. These obligations typically arise from past transactions or events, and they represent claims against the company’s assets. For rental expense under the accrual method, when rent is paid ahead of schedule – which happens rather often – then the…