Set up a loan account

[allcam]

I have a few bills from one supplier unpaid since last year, as he did not pursue the payment.

How can I convert the bills into loan?

Thanks

Paul

[lustbergcpa]

The easiest way to accomplish this is to do a General Journal entry as follows:

Debit Credit

Accounts Payable xxxxxxxxxxx

Notes Payable xxxxxxxxxxx

The notes payable account should be a current liability account.

Why do you want to reclassify this debt? Did you actually sign a note?

[crazysonoran]

Might be easier to just make the payments using pay bills and just let the program track the balance due that way.