On July 29, 2022, Wagner Trucking recorded $24,000 in services that they had performed but had not yet received payment for from the customer. On the same day, Dixon Trucking recorded $24,000 that they need to pay to their suppliers for gas and oil. What is the difference between how these two transactions will be recorded?

In the first transaction, the services are performed but the payment is not received from the customer for $24,000. This amount would come in the accounts receivable under the asset side in the balance sheet.

In the second transaction, the company has the need to pay the $24,000 to their suppliers for gas and oil. This transaction would come under the accounts payable in the liabilities side of the balance sheet