Payment of interest on a credit Retail Double entry bookkeeping with variable chart of accounts

Page: https://excel.hpage.com/bookkeeping.html Playlist: https://www.youtube.com/watch?v=JeP58mdijnU&list=PLKnGGx0Hz5xI The retailer pays 1,000 euros in interest on the credit taken out. Two accounts are involved: Bank Inventory account and expense account Interest. This booking represents a reduction in inventory. The balance in the Bank Inventory account decreases and the amount in the Interest expense account increases. The amount recorded in the journal entry is deducted from the final balance. The amount specified in the journal entry is deducted from the P&L (profit and loss).