Detailed visual description
Alder Design's teaching example assumes an ordinary purchase agreement, no deposit, no special contract accounting, and control transferring on Wednesday's delivery. Monday's signed order has no entry. Wednesday's delivery increases Supplies and Accounts Payable by $3,000 each. Friday's $1,000 payment reduces Cash and Accounts Payable by $1,000 each, leaving $2,000 owed for this purchase. The payment does not create an expense.
Review apparatus
Visual provenance and review
- Technique
- deterministic svg
- Role
- explanatory
- Review state
- candidate
- Rights
- CC0-1.0 · Project-authored teaching diagram
Review notes
- Figures match the fact pattern in L:transactions-to-statements/00-event-element-account exactly.
- Monday deliberately carries a note with no amounts, so the figure cannot be read as recording a commitment.