In a firm that uses special journals,the purchase of merchandise for cash 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 for cash is a cash transaction, so it would be recorded in the cash payments journal. The purchases journal is used to record credit purchases, whereas the cash receipts journal is used to record cash sales. The general journal is used for all other types of transactions that do not fit into a specific special journal.

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