In a firm that uses special journals,the purchase of merchandise with terms of 2/10,n/30 is recorded in the
A) cash payments journal.
B) cash receipts journal.
C) purchases journal.
D) general journal.

Question

Quizplus · Accepted Answer

The purchase of merchandise is a credit transaction, which is recorded in the purchases journal. The terms 2/10, n/30 indicate that the buyer can receive a 2% discount if the invoice is paid within 10 days, otherwise the full amount is due within 30 days. This information is not relevant for the cash payments or cash receipts journal. The general journal is only used for special or unusual transactions that do not fit in other journals.

In a Firm That Uses Special Journals,the Purchase of Merchandise