What account do you credit when the company pays off the credit card bill?

When a company pays off its credit card bill, the appropriate action is to credit the Cash Account. This transaction involves a decrease in the company's cash balance since cash is being used to settle the liability.

When you make a payment toward the credit card bill, the cash that is leaving the company should be recorded as a credit in the Cash Account to accurately reflect the reduction in available cash. This reflects the outflow of resources as the company meets its obligation to pay the credit card balance.

It’s important to note that the corresponding debit entry would increase either the Accounts Payable (if it was previously recorded as a liability) or reduce the relevant Expense Account (if the expenses were accrued), depending on the accounting setup. However, the main element of this transaction is the cash outflow, which is why the Cash Account is credited.