In a purchases journal only one amount is recorded but that amount is posted by
A)Debiting Accounts Payable and crediting Inventory
B)Debiting Inventory and crediting cash
C)Debiting cash and crediting accounts payable
D)Debiting inventory and crediting accounts payable

Question

Quizplus · Accepted Answer

In a purchases journal, only one amount is recorded which is the total amount of purchases made on credit. This amount is then posted by debiting the Inventory account (to increase the inventory balance) and crediting the Accounts Payable account (to increase the amount owed to suppliers for these purchases). Therefore, the best choice is D, which is "Debiting inventory and crediting accounts payable."

In a Purchases Journal Only One Amount Is Recorded but That